Vision Peoples In Mission UK Trust Annual Report 2022
The Vision Peoples In Mission UK Trust is registered with the Charity Commission, Registered Number 1113819. It’s principal address is 61 Saxon Drive, Newport, Shropshire, TF10 7FN.
Structure
The charity is governed by a trust deed executed on 12[th] December 2005.
Charitable Purpose
The VPM UK Trust seeks to relieve poverty and suffering, to prevent disease and ill health, and to promote Christian education and evangelism, particularly in the Korogocho slum of Nairobi. During the year, charitable grants of £62,283.31 were made in pursuit of this.
Charitable Benefit
Vision Peoples In Mission (VPM) works amongst some of the world’s poorest people. The principal benefit is the relief of poverty of residents in the Korogocho slum. This is achieved through running an orphanage, a primary school with a feeding programme, a clinic and a vocational training programme in dressmaking and other projects. These programmes are open to all.
COVID-19 and other ongoing issues
The COVID-19 pandemic has hit the world and has affected us all. As of March 2020, like many organisations around the world, income from some sources stopped. VPM was no exception where they instantly lost income from rent of Lucky summer as a result of tenants losing their jobs. The income from rent collection has increased from 2021 to 1,490,680KSH (£8,331) up from 484,165KSH (£2,700) but this is still significantly down on 2020 (3,926,000KSH (£22,000)).
It is clear that the local income in 2022 still suffered as a result of the pandemic.
As of December 2021, the reported cases in Kenya hits 342,507, up from 295,028 with 5,688 deaths, up from 5,378. COVID cases and related deaths appear to have stabilised during 2022.
However, it was reported that the drought of 2022 was more dangerous than the pandemic. This was the fourth consecutive season of poor rainfall since 2022 causing a lot of issues with access to water, crop growth and death of animals. This has led to an increase in costs
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Vision Peoples in Mission UK Trust is a Charity registered with the UK Charity Commission, No: 1113819
for so many including VPM where food and consumer goods costs continue to rise as a result.
This has also led to many people suffering in health and put many in danger of further malnourishment, become anaemic and dehydrated.
Sadly, many young women suffer directly as they walk to collect water from far distances, and there has been a rise of violence, FGM (Female Genital Mutilation) and child marriage as families marry off their girls to pay for food.
Whilst this is evident in Kenya, there is no known impact directly to VPM and the users of VPM services in Korogocho.
The effects of global warming, predominantly caused by the Western World is having an effect on those in Kenya to a harrowing reality.
As we have seen in the UK and around the world, the war in Ukraine is also felt in Kenya with an increase in the cost of fuel and food. This filters straight down to those living in the slum.
Haven Primary School
1 Children washing their hands before class session
The Christmas 2022 VPM newsletter reported that 2022 was a difficult one with frequent and significant change. Despite this, both teachers and students took this in their stride and have evolved and continued on a devoted learning journey.
The teachers not only teach academically but also give guidance to their pupils and dedicate their time to give the pupils a better life in Korogocho. Haven Primary School
prides itself on treating all pupils equally – whether they are orphans living in Lucky Summer, foster children sponsored through the work of Vision Peoples In Mission or pupils from local families.
It is clear from the newsletter that God is central to the school learning and that God has been with them as a constant through the changes and difficulties faced this year.
It was outlined in last years report that the curriculum in Kenya was changing. This is outlined further in the 2022 Christmas Newsletter:
“Kenya Ministry of Education has changed the system of education. Class 6 candidates for the first time with the new Competency Based Curriculum sat for their Kenya Primary School Education Assessment and we are hoping for the best as they join junior high school. The new education system has two years of preschool education, six years of primary education divided into three years each for lower and upper primary, six years of secondary education split into three years for junior and three years in senior secondary school. The Competency Based Curriculum emphasizes the complex outcomes of a learning process like knowledge, skills and
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Vision Peoples in Mission UK Trust is a Charity registered with the UK Charity Commission, No: 1113819
attitudes to be applied by learners rather than mainly focusing on what learners are expected to learn about in terms of traditionally-defined subject content.”
It has been encouraging to see that a number of students progress beyond the primary education offered in Haven School and sponsors have been found for these students through VPM UK Trust.
There are 361 students in the school.
Feeding Programme
The school feeding programme continues to be a lifeline for many pupils which was continued to grow due to the number of families unable to afford food during these hard economic times.
It really is a lifeline for many of the pupils who need the programme to survive. The feeding programme is targeted towards the school children to ensure that they are able to get at least one proper meal helping with their growth and to stop them being forced to do jobs in the slum to make money for food. The feeding programme is successful in reducing the rate of drop-outs and increasing attendance in the school as well as giving students food to enable them to concentrate on their studies.
The programme is costly but VPM continues to be grateful to a number of donors who support this project.
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Vision Peoples in Mission UK Trust is a Charity registered with the UK Charity Commission, No: 1113819
VPM Medical Centre
Figure 2Nurse Millicent attends to a patient in the clinic.
Vision Medical Centre continues to be a very busy centre, with the Kenyan population increasing at an alarming rate. The centre treats patients for coughs, abdominal pain, headaches, respiratory conditions, malaria, typhoid and gastric indections along with continuing to treat patients with COVID-19, sexual health issues and providing maternity support.
As a result of the growth of the population, Vision Medical Centre requires additional wards including a more robust maternity and womens ward, childrens ward and a mens ward.
All treatment is free or subsidised to the public for those who cannot afford the services of local hospitals. Many of the patients are unable to pay for treatment and will travel to Korogocho from far distances. It is noted that the vulnerable patients at higher risk show up too late and may have been able to get better help if they came a few days earlier. This is due to the high cost and fear that people have of going to seek medical attention.
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Vision Peoples in Mission UK Trust is a Charity registered with the UK Charity Commission, No: 1113819
Women Vocational Training
There was no information about the current status of the vocational programme in the 2022 newsletter
Orphanage
The continues to allow the children a much needed social life and therefore improving their mental health as well as protecting their physical health, safety and security.
All of the children attend Haven Primary School and are fed, given clothing, shelter and medical attention.
All children are cared for and loved treated with parental love and ensure they have access to healthcare, a place to eat and sleep and play with other children.
The children are prepared for integration back into society by finding foster families and asking sponsors to take care of the children, allowing others to be taken in to the orphanage. Whilst under the care of the orphanage, they are given the tools needed to function in society and taught about malnutrition and development of a healthy body and mind.
As with many parts of the world, mental health has taken many great steps over the last couple of years and it is clear to see that VPM also follows on with this ensuring the children in the orphanage and the school take their mental health very seriously.
Future plans
The plans for the development of VPM in Korogocho has been quieter this year. It was expressed by VPM UK Trust that loaning an amount anywhere near what is required (£300,000) would not be possible, nor in the best interest of the trust to protect the longevity of the work done by VPM.
Lucky Summer Housing
As noted earlier in the report, rental income is lower than 2020 although has increased from 2021. This is due to VPM having to reduce rent to tenants due to the high cost of living and loss of jobs. This was done to maintain the good tenants.
Prayer continues to build the remainder of Lucky Summer to increase the number of flats to rent out and increase rental income.
VPM Missionary Church
The church continues to be the backbone of the gospel evangelism to Korogocho residents. The main goal is to present Jesus Christ as the Lord and Saviour of all human kind in all that is done.
The church remains alive and vibrant with Franklyn Otwoma becoming Bishop on 5[th] September 2021 and remaining as leader of Vision Missionary Church.
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Vision Peoples in Mission UK Trust is a Charity registered with the UK Charity Commission, No: 1113819
Vision Peoples In Mission: Governance and Financial Performance
During the year 2022, the board of trustees has changed slightly as is common. Mr Isaac Sikote and Mrs Jemimah Amaokbe have resigned from their posts. The following are on the board of trustees:
Bishop Franklyn Otwoma Pastor Kennedy Otieno Mrs Dorine Ngesa Mrs Violet Omollo Mrs Gladys Mmbone
As is customary, the 2022 audited accounts have been received by the UK trust. These show that the organisation continues to be in good health with Net Surplus of 888,757 KSH (£4,967.02) (2021-£8,219). This has reduced as a result of an increase in Other Operating Expenses and increased tax on rental income. 2022 saw an income of just over 12 million KSH (£67,235) (2021-£83,682 (£65,846 on today’s exchange) and operating expenditure of just almost 11 million KSH (£61,153) (2021-£74,645 (£58,729 on today’s exchange).
Donations from the VPM UK Trust accounts for 75%, compared to 74% last year, 68% in 2020 and 55% in 2019. Income from rent collection increased to as discussed earlier in the report to just 1,490,680 (£8,331) up from 484,165KSH (£3,439) compared with 3.9 million KSH (£25,831) in 2020 (2019-£42,873).
As you can see, this seems to be the main factor in VPM being more reliant on VPM UK Trust.
After an increase in 2020, Clinic collections decreased again to 138,945 KSH (£776) following the significant reduction in 2021 at 391,118KSH (£2,778) compared to 2.5million KSH in 2020 (£16,827).
Total Assets of the Kenyan charity stand at almost 71MKSH (£396,989) up from 70 million KSH (£497,233) (2020-£451,000) - mostly property assets.
In 2022, Vision Peoples In Mission UK Trust accounts for 9.04 million KSH (£50,503.24)* of the 9.82 million KSH that comes from other external income. In 2022, 2.2million KSH comes from internal income (Rent, School, Clinic, Church collections and investment income) which is up from 2021 (1.4mKSH)
Nb. 2021 GBP exchange rate used as £1 = 141KSH Nb. 2022 GBP exchange rate used as £1 = 179KSH
*Figure here slightly different than VPM UK accounts due to exchange rates.
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Vision Peoples in Mission UK Trust is a Charity registered with the UK Charity Commission, No: 1113819
Risk Management
The Future for Korogocho
There are significant plans that are already underway to improve the Korogocho slum area, which is at least in part funded by Italian Government money. Teams have been working to clean the streets and there is more tarmac on the roads than previously. The slum upgrading project has some major implications for building work but this upgrade programme is on it’s final stages:
• Initially that following the award of additional land, the plot now needs to be secured by building a perimeter fence. Following a further round of loan funding (which has now been repaid), this funding is in place and being held in reserves.
• Secondly there is a need for extensive rebuilding. As part of the slum rebuilding, there is a government requirement that only permanent buildings are in place, and the ’shanty’ style buildings will need to be demolished. This requires significant capital, (around £300,000 further capital is required).
• Attracting this additional capital requires confidence that demand would continue from local residents. This is exacerbated as there may be migration issues. The Government has stated an intention that residents of Korogocho would remain, as they have said that they don’t wish to just move the slum further out. All residents are being given plots of land linked to the size of their previous dwelling. However, the requirement to build permanent buildings is likely to lead many of the poorest residents to sell their plots to developers and move away. This may change the nature of the population in Korogocho, and it may lead to different demand on VPM’s services.
Financial Risk: Because the charity simply makes grants out of income received, there is no liability. Should the Trust embark on another round of loan funding to bring forwards expenditure in Korogocho, the lenders would be required to agree that in the event that there are insufficient donations coming into the trust to repay the loans, that they will convert to gifts. This avoids any financial risk to the UK Trust. This has worked well with two previous rounds of loan funding. Although this is a risk to the Kenyan organisation, rather than the UK Trust, there is a wider challenge of sustaining incoming funds from donors – which is nurtured by periodic fund raising visits from the Kenyan director. Most of our funds are regular direct debits routed through Stewardship which helps a more even cash flow than might otherwise be the case.
Reputational Risk / Monitoring: The trustees (or those known to them) have visited the work of Vision Peoples in Mission at intervals over time. Seeing the work on the ground is an important part of evaluating charitable impact. The trust receives copies of their audited report and accounts and have done so for fifteen years. The Trustees (and supporters) receive newsletters and other communication from Nairobi. This long term relationship with VPM gives us confidence in them. No trustee visited VPM in 2022. A trustee may visit in 2024 or 2025.
VPM UK Reserves Policy: Because the trust makes grants out of income received, and does so immediately, there is little need to hold reserves. As such our reserves are nominal.
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Vision Peoples in Mission UK Trust is a Charity registered with the UK Charity Commission, No: 1113819
Financial Report
During the year, the Trust received donations of £63,023.46. Whilst much of the ongoing donation stream is Gift Aided, it is given through Stewardship, who reclaim Gift Aid on our behalf. A gift aid reclaim was not completed in 2022. A £500 cheque bounced and is shown as “Other” Receipts and “Other” payments.
£63,283.81 was paid out in charity grants to support the work of Vision Peoples In Mission in Kenya. £180 was paid in bank fees (Twelve monthly transfer fees of £15). One of the benefits of the Trust is it sends donations electronically, which is the safest means of transferring funds to Nairobi. It does this in a pooled way to avoid individual donors having to pay a significant part of the donation on transfer costs.
The accounts have been independently examined by Simon Hartridge, who has kindly performed this service to us without charge. See page 9 for the Independent Examiner’s Report.
Vision Peoples In Mission UK Trust: 2022 Financial Statements
| ACCOUNTS for 2022 | ||
|---|---|---|
| 2022 | 2021 | |
| RECEIPTS | ||
| Donations | £ 62,523.46 | £ 63,355.33 |
| Gift Aid | £ - | £ - |
| Other | £ 500.00 | |
| TOTAL RECEIPTS | £ 63,023.46 | £ 63,355.33 |
| PAYMENTS | ||
| Grants to VPM | £ 63,283.81 | £ 61,209.41 |
| Loan Repayments | £ - | £ - |
| Bank Charges | £ 180.00 | £ 180.00 |
| Other | £ 500.00 | £ - |
| TOTAL PAYMENTS | £ 63,963.81 | £ 61,389.41 |
| RECEIPTS OVER PAYMENTS | -£ 940.35 | £ 1,965.92 |
| Bank Account 01/01/2022 | £ 8,289.80 | £ 6,323.88 |
| Bank Account 31/12/2022 | £ 7,349.45 | £ 8,289.80 |
| INCREASE IN FUNDS | -£ 940.35 | £ 1,965.92 |
| STATEMENT OF ASSETS AND LIABILITIES | ||
| Cash float | £ 21.69 | |
| Assets | ||
| Loans Receivable | ||
| Bank Account | £ 7,349.45 | £ 8,289.80 |
| Liabilities | ||
| Loans Outstanding | £ - | £ - |
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Vision Peoples in Mission UK Trust is a Charity registered with the UK Charity Commission, No: 1113819
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