COMPANY REGISTRATION NUMBER: 05641704 CHARITY REGISTRATION NUMBER: 1113969
Five Talents UK Ltd Company Limited by Guarantee
Financial Statements
31 December 2023
Five Talents UK Ltd
Company Limited by Guarantee
Financial Statements
Year ended 31 December 2023
| Page | |
|---|---|
| Trustees' annual report (incorporating the Director's report) | 1 |
| Independent Auditor's report to the members | 10 |
| Statement of financial activities (including income and | |
| expenditure account) | 14 |
| Statement of financial position | 15 |
| Statement of cash flows | 16 |
| Notes to the financial statements | 17 |
Five Talents UK Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year ended 31 December 2023
The Trustees, who are also the Directors for the purposes of company law, present their report and the financial statements of the Charity for the year ended 31 December 2023.
Reference and administrative details
Registered charity name Five Talents UK Ltd Charity registration number 1113969 Company registration number 05641704 Principal office and registered Mary Sumner House office 24 Tufton Street London SW1P 3RB The Trustees Thomas Jones, Chair Richard Gray, Treasurer Gordon Seabright Sietske Van Der Ploeg Agnes Gitau Joanne Cetti Nowtash Alsafar Miriam Pennington Andrew Barton Neil Sandy (Resigned 30 March 2023) Andrew Maclay (Resigned 30 March 2023) Grant Masom (Resigned 30 March 2023) Toyosi Ariyo (Resigned 3 October 2023) Michelle Ruddle (Resigned 3 October 2023) Beverley Jullien (Resigned 26 January 2024) Company secretary Rachel Lindley Auditor WMT 4 Beaconsfield Road St Albans Hertfordshire AL1 3RD Bankers Metro Bank PLC One Southampton Row London WC1B 5HA
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Five Talents UK Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2023
Objectives and activities
a Policies and objectives
Five Talents UK Limited's ("Five Talents", "Five Talents UK" or the "Charity") mission is to transform lives through economic empowerment. Our vision is to eradicate extreme poverty by restoring human dignity and creating strong, sustainable communities.
In setting our objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance "Public benefit: running a charity (PB2)".
b Activities undertaken to achieve objectives
Five Talents UK is part of the Five Talents "family" of organisations (being Five Talents USA, Five Talents Kenya and Five Talents International, collectively with Five Talents UK, the "Five Talents Family"). Working through a number of local partners, Five Talents establishes savings and loans groups and delivers literacy, financial literacy and business skills training in rural communities in east and central Africa, Myanmar and Bolivia. Members of our programmes can access a safe place to save, small loans to invest in their businesses, and the skills to use them well, often for the first time. The increased profits they generate enable them to feed and educate their families and improve their standard of living, sustainably. Literacy and numeracy skills alongside financial and business skills training enables members to increase their agency and voice, with many women (the majority members of Savings Groups) reporting improved relationships in the home and community and taking up leadership positions for the first time.
Five Talents collects regular data, both quantitative and qualitative, to measure the impact of our programmes. In 2022, we developed a new Theory of Change which sets out clearly the changes we hope to see, how we will achieve them and how we will measure success.
c Grant making policies
Five Talents UK works with the rest of Five Talents Family to identify suitable microenterprise partners to work with in low-income countries. A Memorandum of Understanding is signed with each partner annually. Grants are made quarterly according to an annual budget and are only released once satisfactory reports on financial and social performance during the previous quarter have been received and approved by the UK office. The Memoranda of Understanding include requirements for partners to comply with Anti-Bribery and Safeguarding Policies. In 2023, Five Talents programme team members and partners met for an extended safeguarding training in Kampala, Uganda.
d Volunteers
The work of Five Talents is greatly enhanced by the efforts of a number of enthusiastic and dedicated volunteers who mainly work in the UK, for example speaking at events for us in their local region and / or promoting Five Talents at conferences and festivals. We are grateful to all of our volunteers.
e Main activities undertaken to further the Company' s purposes for the public benefit
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives and in planning future activities. The Trustees believe that the activities undertaken in the year for achieving the objectives of the Charity have met the public benefit requirement.
2
Five Talents UK Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2023
Achievements and performance
a Key performance indicators
In 2022, Five Talents UK and the rest of the Five Talents Family developed an organisation-wide fiveyear growth plan. It set the following objectives:
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Grow programmes effectively by adapting to each local context
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Increase growth in new members each year by 20%
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Start new programmes in three "new frontier" countries
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Grow Five Talents and partner capacity to implement programmes
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Grow Five Talents' global revenue to $4.5m per year by 2027
The first four objectives are focused on programmes, and the UK members of Five Talents’ Global Programme Team continue to work towards these. However, the majority of our UK staff time and effort is focused on growing income; we break this down into two goals of ‘fundraising’ and relatedly ‘tell the world’ (so that we can reach new audiences / supporters). As our total income target grows, we must keep finding new givers in each category (Trusts / Foundations, regular givers, major donors, churches, companies) as well as maintaining existing ones. So, for each category, we have dual objectives against which we measure ourselves: nurturing existing relationships and seeking out and attracting new relationships.
b Review of activities
Five Talents UK continued to expand throughout 2023, achieving its growth objectives in this, the first of five years of planned strategic expansion.
Our primary measure of success is the impact of partner programmes, for example: more members joining our Savings Groups; more women completing the training schemes that empower them to become entrepreneurs; and more families eating well in households that are more resilient.
In 2023 the Five Talents Family remained active in nine countries: Bolivia, Burundi, Democratic Republic of Congo, Kenya, Myanmar, Rwanda, South Sudan, Tanzania and Uganda.
We are grateful to the many partnerships that help deliver programmes to communities in all these nations. In 2023 we saw growth across all these programmes, with new members joining and new Savings Groups starting. The cost-of-living crisis, climate change and conflicts in many places where we work drove increased demand as more communities saw the value of having savings for a crisis, access to loans to re-start businesses, skills training to diversify and a supportive community group for tough times. In 2023 our programme partners were able to support 32,686 members in 1,283 Groups. The number of new members joining programmes in 2023 totalled 11,144.
In 2023 we launched new programmes in the Diocese of Wandi, South Sudan, and in the Tsavo National Conservancy, Kenya.
Independent research on impact
In 2023 we also published the results of an independent longitudinal evaluation of our work in Burundi (delivered by the Mothers’ Union Burundi in partnership with Five Talents). The report helped to demonstrate the positive impact of the programme over the past decade or more, for example:
- Over 144,000 people (78% women) have learned to read and write and now have a formal literacy qualification - this accounts for 2.9% of the adult literate population in Burundi.
3
Five Talents UK Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2023
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Over 6,200 Savings Groups formed; about half of these were established with direct support from the programme, the other half formed organically as members and communities recognised the value and impact of these Groups.
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In 2006, only 15% of the female programme participants owned productive assets including land and cattle. Seventeen years later: 91% were able to buy goats or pigs; 81% were able to diversify their livelihoods and/or businesses; 71% were able to buy a mobile phone; 52% were able to buy land; and 33% were able to buy cattle.
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Almost all Savings Group members now employ at least one other person, and over a third of female participants and nearly half of male participants have started businesses which now employ 2 or more people.
The evaluation provides compelling insights into the effectiveness of Literacy and Savings Groups, and a strong validation of Five Talents’ work, and that of our programme partners. The launch of the evaluation attracted strong interest including press coverage.
We continue to hear compelling stories of the impact of programmes from all of our partner programmes. For example, a member, Danielle, in Rwanda shares:
"During COVID, my husband lost his job, as he was working casual labour on a daily wage. We had to figure out what to do to support our family. I had never been part of a Savings Group, but I was invited to join. I came to the Group crying as my husband was traumatised from losing his job. I joined the Group and started a business to support my family ."
Through her Savings Group, Danielle started a sorghum (a type of grain) business. She buys sorghum from farmers and then makes a non-alcoholic sorghum beer (similar to rootbeer), selling it at a profit. Danielle was able to expand her business with a loan to buy a larger stock of sorghum. Through her efforts, she has now grown her capital and plans to expand the business further and improve her home - she is already making the bricks to do just that.
"From the Group, I was also able to take out a loan to buy a goat." she says. "I also have a cow, since the government gave cows to many households who were poor. Through the Group, I learned to work hard, to socialise... I used to be so shy and couldn't speak in front of others, but now I can even lead a Bible study ."
With income totalling £1,433,956, grants to programme partners were higher than ever before in Five Talents’ history, at £884,906. As these results demonstrate, investments made in 2022, including the expansion of the staff team, bore considerable fruit in 2023.
Five Talents celebrated its 25th anniversary in 2023, with activities in the UK focused on both this and on increasing our income and raising the profile of our work. Events to mark the anniversary were held throughout the year, including an event at which our Patron, the Archbishop Justin Welby, and Mrs Caroline Welby, spoke. Other events were held at the Tower of London, the Reform Club and the Grocers' Hall.
We are also committed to our journey of shifting power and decolonising development, with steps taken reviewed regularly and updates published annually on our website (see here).
In line with our environmental policy, we minimise international travel and mitigate the climate impact of flights we have to take for our work. We have calculated the carbon cost of all flights taken in 2023 by staff working for the charity and will be making a donation in 2024 to an appropriate environmental
4
Five Talents UK Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2023
charity. A donation of £966 was made in 2023, to offset the carbon emissions of flights taken in 2022. This covered the cost of planting 276 trees.
c Factors relevant to achieve objectives
With the communities that Five Talents and our programme partners serve under considerable pressure due to the cost-of-living crisis, ongoing climate change and conflict in many places, and in order to achieve the targets set out in our strategic growth plan, the Five Talents staff team grew from 5.4 fulltime employees (FTE) in mid-2022 to 9 FTE by mid-2023. This has led to an increase in operating costs in 2023. However, it has also increased the capacity of our team to fundraise, as demonstrated by record income and grants to programmes in 2023.
d Fundraising activities
Total income and total grants made to programmes were both at all time high levels of £1,433,956 and £884,906 (2022: £1,212,321 and £811,694). As the climate for fundraising in the UK remains challenging, we are delighted with these results. The Trustees view the total grants to programme partners for the delivery of our charitable programmes as the most important figure, as it enables Five Talents to achieve its charitable objectives.
We continue to enjoy reasonably strong diversification across our income streams and remain incredibly grateful to all our loyal donors for their generous giving. This giving was sustained throughout 2023, and we witnessed some significant uplift in support too. We are very thankful to the many individual donors who support Five Talents generously, and to the growing number of charitable trusts and foundations that made grants to the charity in 2023, enabling us to expand our partner programmes.
The Charity does not work with professional fundraisers. The Charity's fundraising was not bound by any voluntary regulating scheme or standard during the year. No complaints were received in respect of the Charity's fundraising activities. The Charity has taken reasonable steps to ensure that the public was protected from behaviour which may be unreasonably intrusive, persistent or have placed undue pressure on a person to give money.
Financial review
a Financial review and going concern
The total incoming resources for the year were £1,433,956 (2022: £1,212,321). Total resources expended were £1,392,729 (2022: £1,192,813). At 31 December the charity held fund balances of £564,918 (2022: £523,691) which was made up of restricted funds of £287,021 (2022: £299,249) and unrestricted funds of £277,897 (2022: £224,442).
After making appropriate enquiries, the Trustees have a reasonable expectation that Five Talents has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
b Reserves Policy
The Trustees' Reserves Policy was amended in May 2020 due to the COVID pandemic; the Trustees decided to increase the level of reserves, maintaining between 4- and 6-months’ non-grant expenditure in unrestricted reserves (previously it had been between 3 to 6 months), in order to cover the charity for unexpected monthly fluctuations in income. Despite economic uncertainty, Five Talents income has
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Five Talents UK Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2023
grown in recent years and so a decision was taken by the Trustees in February 2023 to return the level of reserves to 3-6 months’ non-grant expenditure.
The level of unrestricted reserves as at 31 December 2023 was at the higher end of our policy range for 2023, reflecting increased income. Having regard to Five Talents increased operating costs, it is noted that unrestricted reserves will need to increase in line with the Reserves Policy.
c Principal risks and uncertainties including Risk Management
The Trustees assess the principal risks on the risk register, which are an inability to raise sufficient income to finance planned activities; cyber security (including the failure to comply with GDPR), reliance on partners in east and central Africa to deliver programmes, compliance with regulatory requirements in the UK and by partners in Africa, political unrest or instability in our operational areas, safeguarding, and/or negative press coverage in other parts of the charity sector which negatively affect Five Talents.
Principal funding risk: In 2023 just over half of our income came from individual giving, including regular giving, gifts to our Christmas appeal and Gift Aid. Approximately 40% our income came from grants from trusts and foundations and the balance came from gifts from churches and sponsored events.
In the UK, a drop in fundraising income due to the wider challenges in the UK economy remains the highest risk. We actively monitor our fundraising KPIs closely so that we can seek to mitigate the loss of regular giving income if need be. For our partners in eastern and central Africa, the long-term economic effects of the coronavirus outbreak 2019-20 as well as climate change, conflict and the costof-living crisis continue to be felt. This makes our work all the more urgent.
Other risks: The charity has undertaken a series of training and mitigations on cyber security in 2023 to help reduce the risk of a data breach.
Specifically, regarding financial risk management, the Co-CEOs, Chair and Treasurer review the management accounts every month and the Board reviews them at quarterly meetings.
The Risk Assessment for UK risks was reviewed at a Board meeting in October 2023. The Programme Risk Register was reviewed by the Programme Quality Committee in September 2023 and Risk Management was also considered by the Five Talents International Board in October 2023.
d Plans for future periods
In 2024, our work will focus on priorities including:
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Growth in grants to programmes, enabling more members to experience the benefits of Literacy and Savings Groups.
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Further uplift in income, and an extension of work with the Five Talents Family and programme partners, as we continue to pursue our five-year strategic growth plans.
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Strategic events, activities and communications, to raise Five Talents profile amongst donors.
In October 2023, following a tender process, a decision was taken by the Trustees to appoint a new firm, Williamson Morton Thornton 'WMT' LLP, as the charity's auditor.
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Five Talents UK Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2023
Structure, governance and management
a Constitution
Five Talents UK Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 14 November 2005. It is a registered charity number 1113969.
The company was incorporated on 1 December 2005 and commenced trading on that date.
b Methods of appointment or election of Trustees
The process of recruitment, appointment and induction is outlined below:
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The skills and lived experience required of any potential new candidates are identified and agreed by the existing Trustees in consultation with the Co-CEOs/Executive Team.
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Vacancies are advertised openly - and specifically in media which are appropriate to the skills and experiences needed and can help ensure the advertisement is seen by a diverse range of people.
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Prospective Trustees are invited to meet existing Trustees and the Executive Team to explore the appointment. They are given documents outlining the responsibilities of charity Trustees and the activities and plans of the charity. Informal interviews may be conducted.
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Nominees are discussed at a Trustee meeting or sub-group meeting and a vote held to appoint or not.
Successful candidates are invited to the office for induction. They are encouraged to make an overseas visit to one of the microenterprise programmes where appropriate.
In 2020, we undertook a wide-ranging review of our Diversity and Inclusion Policies and practice based on the Black Lives Matter movement and Charity So White movement, and we committed to learn more about systemic racism, specifically racism in the international development sector. As a result, our UK board members have resolved to work towards having at least 20% of Board positions held by people from ethnic minorities (especially but not exclusively) from countries where we work and at least 50% of the board being women. The new appointments made in the late 2021 / early 2022 move us towards this target although we recognise that addressing structural inequities is an ongoing journey.
c Policies adopted for the induction and training of Trustees
There is a Trustee induction programme covering roles and responsibilities of the Board and the executive team, background information about the charity, policies and procedures, aims and objectives for the current period etc.
d Charity's wider network
Five Talents UK is a member of BOND, the Financial Inclusion Forum and Partners for World Mission. BOND is a source of best practice and peer networking within the international development sector whilst the Financial Inclusion Forum allows sharing of learning on microfinance and Partners for World Mission helps Five Talents network with other Christian development charities.
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Five Talents UK Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2023
e Related party relationships
This is disclosed in the Related Parties note in the accounts.
- f Governance
The Trustees of the charity take all decisions at Quarterly Board meetings. The Executive Team has regular meetings with the Chair for strategic guidance between meetings, and the Treasurer receives monthly management accounts.
In October 2023, a decision was taken by the Trustees to establish a Finance Committee to oversee financial reporting, the processes related to financial controls and the external audit process. With Five Talents having grown considerably in recent years, the Finance Committee will help to further strengthen Board oversight of this key area.
The Programme Quality Committee, a sub-Committee of Five Talents International, reviews all programme matters.
g Remuneration of key personnel
Five Talents operates a relatively flat pay structure, with pay for all staff in 2023 falling between £25,000 and £45,000 per annum. In 2020, a system of pay bands was introduced.
Pay proposals are reviewed annually and approved by the Board. Each staff member has an annual appraisal which may also inform any salary increase decisions. However, with just 9 staff, the team sees its successes and challenges as shared by the whole team. In 2023, pay bands were reviewed and pay awards were made across the team to recognise performance and increased cost of living caused principally by inflation.
A decision was taken by the Trustees in April 2023 to move to a Co-CEO structure, in order to provide increased leadership and delivery capacity during a season of strategic growth.
Trustees' responsibilities statement
The Trustees, who are also directors for the purposes 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 charity Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP; and
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make judgments and accounting estimates that are reasonable and prudent.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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
8
Five Talents UK Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2023
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.
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Small company provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.
The Trustees' annual report was approved on 4 April 2024 and signed on behalf of the board of Trustees by:
Thomas Jones, Chair Trustee
9
Five Talents UK Ltd
Company Limited by Guarantee
Independent Auditor's Report to the Members of Five Talents UK Ltd (continued)
Year ended 31 December 2023
Opinion
We have audited the financial statements of Five Talents UK Ltd (the ‘charitable company’) for the year ended 31 December 2023 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and notes to the financial statements, including a summary of 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:
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give a true and fair view of the state of the charitable company’s affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 charitable company 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 entity'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, except to the extent otherwise explicitly stated in our report, 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
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Five Talents UK Ltd
Company Limited by Guarantee
Independent Auditor's Report to the Members of Five Talents UK Ltd (continued)
Year ended 31 December 2023
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees’ report, which includes the directors’ report prepared for company law purposes, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the and the directors’ report included within the trustees’ report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion :
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the Trustees’ were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes 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 charitable company’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
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.
11
Five Talents UK Ltd
Company Limited by Guarantee
Independent Auditor's Report to the Members of Five Talents UK Ltd (continued)
Year ended 31 December 2023
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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.
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
Based on our understanding of its activities, the following laws and regulations were identified as being of significance to the entity:
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Those laws and regulations considered to have a direct effect on the financial statements include UK Financial Reporting Standards (FRS 102), the Companies Act 2006, Charities SORP and SORP 2015.
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Employment Law
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Health and Safety
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to: inquiries of management as to whether the entity complies with such laws and regulations; inquiries with the same concerning any actual or potential litigation or claims; Inspection of relevant legal correspondence; review of board meeting minutes; testing the appropriateness of journal entries and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
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. As explained above, 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 located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
12
Five Talents UK Ltd
Company Limited by Guarantee
Independent Auditor's Report to the Members of Five Talents UK Ltd (continued)
Year ended 31 December 2023
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Elizabeth Wicks (Senior Statutory Auditor)
For and on behalf of WMT Chartered accountants & statutory auditor WMT 4 Beaconsfield Road St Albans Hertfordshire AL1 3RD
Date: 5 April 2024
13
Five Talents UK Ltd
Company Limited by Guarantee
Statement of Financial Activities (Including income and expenditure account)
Year ended 31 December 2023
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total funds | |||
| funds | funds | Total funds | As restated | ||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Donations and legacies | 5 | 756,787 | 668,329 | 1,425,116 | 1,211,211 |
| Investment income | 6 | 8,714 | – | 8,714 | 1,003 |
| Other income | 7 | 126 | – | 126 | 107 |
| -------------------------------- | -------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total income | 765,627 | 668,329 | 1,433,956 | 1,212,321 | |
| ================================ | ================================ | ========================================= | ========================================= | ||
| Expenditure | |||||
| Expenditure on raising funds: | |||||
| Costs of raising donations and | |||||
| legacies | 8 | 176,672 | – | 176,672 | 127,703 |
| Expenditure on charitable activities | 9,10 | 535,500 | 680,557 | 1,216,057 | 1,065,110 |
| -------------------------------- | -------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total expenditure | 712,172 | 680,557 | 1,392,729 | 1,192,813 | |
| ================================ | ================================ | ========================================= | ========================================= | ||
| -------------------------------- | -------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Net income / (expenditure) and net | |||||
| movement in funds | 53,455 | (12,228) | 41,227 | 19,508 | |
| ================================ | ================================ | ========================================= | ========================================= | ||
| Reconciliation of funds | |||||
| Total funds brought forward (as restated) | 224,442 | 299,249 | 523,691 | 504,183 | |
| -------------------------------- | -------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total funds carried forward | 277,897 | 287,021 | 564,918 | 523,691 | |
| ================================ | ================================ | ========================================= | ========================================= |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 17 to 32 form part of these financial statements.
14
Five Talents UK Ltd
Company Limited by Guarantee
Statement of Financial Position
31 December 2023
| 2022 | |||
|---|---|---|---|
| 2023 | As restated | ||
| Note | £ | £ | |
| Fixed assets | |||
| Tangible fixed assets | 19 | 813 | 1,669 |
| Current assets | |||
| Debtors due within one year | 20 | 50,838 | 99,615 |
| Investments | 21 | 166,921 | – |
| Cash at bank and in hand | 362,447 | 437,589 | |
| -------------------------------- | -------------------------------- | ||
| 580,206 | 537,204 | ||
| Creditors: amounts falling due within one year | 22 | 16,101 | 15,182 |
| -------------------------------- | -------------------------------- | ||
| Net current assets | 564,105 | 522,022 | |
| -------------------------------- | -------------------------------- | ||
| Total assets less current liabilities | 564,918 | 523,691 | |
| -------------------------------- | -------------------------------- | ||
| Net assets | 564,918 | 523,691 | |
| ================================ | ================================ | ||
| Funds of the charity | |||
| Restricted funds | 287,021 | 299,249 | |
| Unrestricted funds | 277,897 | 224,442 | |
| -------------------------------- | -------------------------------- | ||
| Total charity funds | 24 | 564,918 ================================ |
523,691 ================================ |
The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006.
These financial statements have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.
These financial statements were approved by the board of Trustees and authorised for issue on 4 April 2024, and are signed on behalf of the board by:
Thomas Jones, Chair Trustee
Richard Gray, Treasurer Trustee
The notes on pages 17 to 32 form part of these financial statements.
15
Five Talents UK Ltd
Company Limited by Guarantee
Statement of Cash Flows
Year ended 31 December 2023
| 2022 | ||
|---|---|---|
| 2023 | As restated | |
| £ | £ | |
| Cash flows from operating activities | ||
| Net income / (expenditure) | 41,227 | 19,508 |
| Adjustments for: | ||
| Depreciation of tangible fixed assets | 856 | 656 |
| Dividends, interest and rents from investments | (1,932) | – |
| Other interest receivable and similar income | (6,782) | (1,003) |
| Accrued expenses / (income) | 49,770 | (86,282) |
| Changes in: | ||
| Trade and other debtors | (74) | – |
| ---------------------------- | ---------------------------- | |
| Cash generated from operations | 83,065 | (67,121) |
| Interest received | 6,782 | 1,003 |
| ---------------------------- | ---------------------------- | |
| Net cash from / (used in) operating activities | 89,847 | (66,118) |
| ============================ | ============================ | |
| Cash flows from investing activities | ||
| Dividends, interest and rents from investments | 1,932 | – |
| Purchase of tangible assets | – | (1,063) |
| Purchases of other investments | (166,921) | – |
| -------------------------------- | ---------------------------- | |
| Net cash used in investing activities | (164,989) | (1,063) |
| ================================ | ============================ | |
| Net decrease in cash and cash equivalents | (75,142) | (67,181) |
| Cash and cash equivalents at beginning of year | 437,589 | 504,770 |
| -------------------------------- | -------------------------------- | |
| Cash and cash equivalents at end of year | 362,447 | 437,589 |
| ================================ | ================================ |
The notes on pages 17 to 32 form part of these financial statements.
16
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Mary Sumner House, 24 Tufton Street, London SW1P 3RB.
Five Talents UK Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, “The Financial Reporting Standard applicable in the UK and the Republic of Ireland”, the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, or transaction value unless otherwise stated in the relevant accounting policy.
The financial statements are prepared in sterling, which is the functional currency of the entity. All balances are rounded to the nearest £1.
Going concern
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. In making this decision the Trustees considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
17
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
3. Accounting policies (continued)
Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the statement of financial activities.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Significant judgements
The Trustees consider that there are no judgements (apart from those involving estimations) that management have made in the process of applying the entity's accounting policies and that have a significant effect on the amounts recognised in the financial statements.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The Trustees consider that there are no key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
18
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
3. Accounting policies (continued)
Fund accounting
General or unrestricted funds are available for use at the discretion of the Trustees to further any of the charity's purposes.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Incoming resources
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
-
Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
-
Legacy income is recognised when receipt is probable and entitlement is established.
-
Income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
-
Income tax recoverable in relation to donations received under Gift Aid or Deeds of covenant is recognised at the same time as the donation to which it relates. This is a change in policy and has resulted in a prior year adjustment as discussed below (see note 18 below).
-
Income in relation to investment income is recognised at the time the investment income is receivable.
19
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
3. Accounting policies (continued)
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure is classified by activity. The costs of each activity are made up of the total 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 estimated time spent, and depreciation charges allocated on the portion of the asset's use.
-
Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
-
Expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.
-
Expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
-
Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
-
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
20
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
3. Accounting policies (continued)
Tangible assets
Tangible assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable, and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
- Equipment - 33% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
21
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
3. Accounting policies (continued)
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
Defined contribution pension plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
4. Limited by guarantee
Five Talents UK Limited is incorporated as a company limited by guarantee not having any share capital. The members of the company are the Trustees named on page 1. In the event of the company being would up the liability in respect of the guarantee is limited to £10 per member of the company.
5. Donations and legacies
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Donations | |||
| Donations - Individuals | 417,841 | 334,906 | 752,747 |
| Donations - Trusts, foundations & corporates | 294,338 | 323,959 | 618,297 |
| Donations - Sponsored events, churches & schools | 44,608 | 9,464 | 54,072 |
| -------------------------------- | -------------------------------- | ----------------------------------------- | |
| 756,787 | 668,329 | 1,425,116 | |
| ================================ | ================================ | ========================================= |
22
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
5. Donations and legacies (continued)
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | As restated | |
| As restated | As restated | 2022 | |
| £ | £ | £ | |
| Donations | |||
| Donations - Individuals | 354,171 | 348,558 | 702,729 |
| Donations - Trusts, foundations & corporates | 154,413 | 284,102 | 438,515 |
| Donations - Sponsored events, churches & schools | 45,988 | 23,979 | 69,967 |
| -------------------------------- | -------------------------------- | ----------------------------------------- | |
| 554,572 | 656,639 | 1,211,211 | |
| ================================ | ================================ | ========================================= |
6. Investment income
| Unrestricted | Total Funds | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Income from other investments | 1,932 | 1,932 | – | – | |
| Bank interest receivable | 6,782 | 6,782 | 1,003 | 1,003 | |
| ----------------------- | ----------------------- | ----------------------- | ----------------------- | ||
| 8,714 | 8,714 | 1,003 | 1,003 | ||
| ======================= | ======================= | ======================= | ======================= | ||
| Other income | |||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Other income | 126 | 126 | 107 | 107 | |
| ============== | ============== | ============== | ============== | ||
| Costs of raising donations and | legacies | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Wages and salaries | 125,225 | 125,225 | 90,367 | 90,367 | |
| Employer's NIC | 11,054 | 11,054 | 7,336 | 7,336 | |
| Pension costs | 12,006 | 12,006 | 9,037 | 9,037 | |
| Other (e.g., travel costs) | 7,020 | 7,020 | – | – | |
| Administrative fees | 9,085 | 9,085 | 8,856 | 8,856 | |
| Conference and event costs | 12,282 | 12,282 | 12,107 | 12,107 | |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | ||
| 176,672 | 176,672 | 127,703 | 127,703 | ||
| ================================ | ================================ | ================================ | ================================ |
7. Other income
8. Costs of raising donations and legacies
23
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
9. Expenditure on charitable activities by fund type
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Direct Activities | 446,090 | 680,557 | 1,126,647 |
| Support costs | 89,410 | – | 89,411 |
| -------------------------------- | -------------------------------- | ----------------------------------------- | |
| 535,500 | 680,557 | 1,216,057 | |
| ================================ | ================================ | ========================================= | |
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Direct Activities | 322,696 | 670,148 | 992,845 |
| Support costs | 72,266 | – | 72,267 |
| -------------------------------- | -------------------------------- | ----------------------------------------- | |
| 394,962 | 670,148 | 1,065,112 | |
| ================================ | ================================ | ========================================= |
The figure of £680,557 (2022: £670,148) shown above under Restricted Funds includes restricted grants of £596,861 (2022: £604,382). The figure of £446,090 (2022: £322,696) includes unrestricted grants of £266,370 (2022: £172,506) and other programme expenditure of £nil (2022: £8,760). The total grants, both unrestricted and restricted, are summarised in Note 13 together with UK programme management costs of £83,697 (2022: £65,768).
10. Expenditure on charitable activities by activity type
| Activities | |||||
|---|---|---|---|---|---|
| undertaken | Grant funding |
Support | Total funds | ||
| directly | of activities | costs | 2023 | ||
| £ | £ | £ | £ | ||
| Direct Activities | 158,135 | 968,512 | 43,793 | 1,170,440 | |
| Governance costs | – | – | 45,617 | 45,617 | |
| -------------------------------- | -------------------------------- | ---------------------------- | ----------------------------------------- | ||
| 158,135 | 968,512 | 89,410 | 1,216,057 | ||
| ================================ | ================================ | ============================ | ========================================= | ||
| Activities | |||||
| undertaken | Grant funding |
Support | Total funds | ||
| directly | of activities | costs | 2022 | ||
| £ | £ | £ | £ | ||
| Direct Activities | 106,625 | 886,220 | 36,343 | 1,029,188 | |
| Governance costs | – | – | 35,924 | 35,924 | |
| -------------------------------- | -------------------------------- | ---------------------------- | ----------------------------------------- | ||
| 106,625 | 886,220 | 72,267 | 1,065,112 | ||
| ================================ | ================================ | ============================ | ========================================= |
24
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
11. Analysis of support costs
| Activities | Total 2023 | Total 2022 | |
|---|---|---|---|
| £ | £ | £ | |
| Premises | 10,720 | 10,720 | 13,400 |
| Communications and IT | 304 | 304 | 455 |
| General office | 1,859 | 1,859 | 1,372 |
| Finance costs | 451 | 451 | 289 |
| Governance costs | 45,617 | 45,617 | 35,922 |
| Insurance | 275 | 275 | 260 |
| Depreciation | 856 | 856 | 656 |
| Travel and entertainment | 1,749 | 1,749 | 2,925 |
| Training and conference fees | 4,765 | 4,765 | 932 |
| Miscellaneous expenditure | 1,538 | 1,538 | 1,493 |
| Books, journals and subscriptions | 8,944 | 8,944 | 7,497 |
| Equipment | 2,061 | 2,061 | 1,113 |
| Bookkeeping | 5,250 | 5,250 | 4,800 |
| Payroll and pension administration costs | 1,942 | 1,942 | 1,798 |
| Support costs - Other costs type 10 | 3,079 | 3,079 | – |
| ---------------------------- | ---------------------------- | ---------------------------- | |
| 89,410 | 89,410 | 72,912 | |
| ============================ | ============================ | ============================ | |
| Governance costs | |||
| 2023 | 2022 | ||
| £ | £ | ||
| Wages and salaries | 25,438 | 21,853 | |
| Employers' National Insurance | 2,245 | 1,774 | |
| Pension Costs | 2,439 | 2,185 | |
| Insurance | 651 | 532 | |
| Accountancy fees | 2,126 | 1,610 | |
| Audit fees | 10,620 | 7,910 | |
| Costs of Trustees' meetings | 152 | 58 | |
| Other costs | 1,946 | – | |
| ---------------------------- | ---------------------------- | ||
| Total | 45,617 | 35,922 | |
| ============================ | ============================ |
12. Governance costs
25
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
13. Grants to institutions
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Grants to institutions | ||
| Five Talents Kenya | 74,873 | 77,818 |
| Kenya - Kericho CDT | 25,511 | 38,000 |
| Kenya - WECODET (Western Kenya) | 58,500 | 72,000 |
| Kenya - Baringo CDT | 59,524 | 48,100 |
| Kenya - Marsabit AMWEP | 58,650 | 55,256 |
| Tanzania - Morogoro OMC | 64,673 | 55,000 |
| Tanzania - Mothers' Union VICOBA | 80,290 | 63,549 |
| Democratic Republic of Congo - Diocese of Aru / Mothers' Union | 94,728 | 84,962 |
| Uganda - Karamoja | 55,235 | 52,746 |
| Burundi - Mothers' Union | 96,458 | 85,118 |
| South Sudan - Bahr el Ghazal and Mothers' Union in Dioceses of | ||
| Juba, Renk, Terekeka & Wandi | 92,966 | 58,273 |
| Rwanda | 65,000 | 55,326 |
| Kenya – Mombasa | 36,913 | 30,741 |
| -------------------------------- | -------------------------------- | |
| Total grants | 863,321 ================================ |
776,889 ================================ |
In addition to the grants shown above, grants of £21,585 (2022: £34,805) were made from unrestricted funds to assist in Programme training and support, funding a workshop for all partners on safeguarding and monitoring, evaluation and learning. (2022: workshops, evaluations and for consultants). This gives a total grants figure of £884,906 (2022: £811,694).
14. Net income/(expenditure)
Net income / (expenditure) is stated after charging / (crediting):
| Net income / (expenditure) is stated after charging / (crediting): | |||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Depreciation of tangible fixed assets | 856 | 656 | |
| ============== | ============== | ||
| 15. | Auditors remuneration | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Fees payable for the audit of the financial statements | 10,620 | 7,910 | |
| ============================ | ======================= |
Other non-audit services of £Nil (2022: £Nil) were charged in the year.
26
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
16. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 325,758 | 215,310 |
| Social Security costs | 28,755 | 17,478 |
| Employer contributions to pension plans | 31,197 | 21,531 |
| -------------------------------- | -------------------------------- | |
| Total | 385,710 | 254,319 |
| ================================ | ================================ |
No employee received employee benefits of more than £60,000 during the year (2022: nil).
The average head count of employees during the year was 9 (2022: 7). The average number of full-time equivalent employees during the year was as follows:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Fundraising | 3 | 3 |
| Charitable operations | 6 | 4 |
| -------------- | -------------- | |
| 9 | 7 | |
| ============== | ============== |
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to the now three relevant employees (2022: two employees), including pensions and National insurance, for services provided to the charity was £139,826 (2022: £96,494).
17. Trustee remuneration and expenses
During the year no Trustees received any remuneration or other benefits (2022: £Nil)
During the year expenses totalling £Nil (2022: £nil) were reimbursed or paid directly to the Trustees for travel.
18. Prior Year adjustment
Income and accrued income have been restated in the prior year in relation to Gift Aid receivable.
Gift Aid totalling £39,950 that related to the financial year ending 31 December 2022 was received and initially recognised in 2023. The Charities SORP states that Gift Aid on donations should be treated as receivable at the time the original donation was received. As such, a prior year adjustment has been made to recognise the Gift Aid in the appropriate year.
The impact of the adjustment on the prior year is as follows:
Increase in accrued income: £39,950 Increase in reserves: £39,950 Increase in income: £39,950
27
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
19. Tangible fixed assets
| Equipment | |||
|---|---|---|---|
| £ | |||
| Cost | |||
| At 1 January 2023 and 31 December 2023 | 2,854 | ||
| ======================= | |||
| Depreciation | |||
| At 1 January 2023 | 1,185 | ||
| Charge for the year | 856 | ||
| ----------------------- | |||
| At 31 December 2023 | 2,041 | ||
| ======================= | |||
| Carrying amount | |||
| At 31 December 2023 | 813 | ||
| ======================= | |||
| At 31 December 2022 | 1,669 | ||
| ======================= | |||
| 20. | Debtors due within one year | ||
| 2022 | |||
| 2023 | As restated | ||
| £ | £ | ||
| Prepayments and accrued income | 50,764 | 99,615 | |
| Other debtors | 74 | – | |
| ---------------------------- | ---------------------------- | ||
| 50,838 | 99,615 | ||
| ============================ | ============================ | ||
| 21. | Investments | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Other investments | 166,921 | – | |
| ================================ | ============== |
In June 2023 Five Talents invested £170,000 of the Charity's reserves into The Charity Assets Trust Collective Investment scheme managed by Ruffer LLP. In the year the value of the investment fell by £3,079 (excluding dividend payments). The decision to make this investment was taken by the Trustees to reduce the risk of holding these funds as cash on account and to steward well the charity’s assets, securing a return on investment.
22. Creditors: amounts falling due within one year
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Accruals and deferred income | 16,101 | 15,182 |
| ============================ | ============================ |
28
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
23. Pensions and other post-retirement benefits
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £31,197 (2022: £21,531).
Contributions totalling £Nil (2022: £Nil) were payable to the fund at the balance sheet date.
24. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | |||||
|---|---|---|---|---|---|
| At | At | ||||
| 1 | Jan 2023 | Income | Expenditure | 31 Dec 2023 | |
| £ | £ | £ | £ | ||
| General funds | 224,442 | 765,627 | (712,172) | 277,897 |
|
| ================================ | ================================ | ================================ | ================================ | ||
| At | |||||
| At | 31 Dec 2022 | ||||
| 1 | Jan 2022 | Income | Expenditure | As restated | |
| £ | £ | £ | £ | ||
| General funds | 191,425 | 555,682 | (522,665) | 224,442 |
|
| ================================ | ================================ | ================================ | ================================ |
Restricted funds
| Restricted funds | ||||
|---|---|---|---|---|
| At | At | |||
| 1 Jan 2023 | Income | Expenditure | 31 Dec 2023 | |
| £ | £ | £ | £ | |
| Kenya - General | 8 | 5,600 | (5,608) | - |
| Kenya - Kericho | 1,277 | 21,000 | (22,277) | - |
| Kenya - WECODET | 18,858 | 37,284 | (26,006) | 30,136 |
| Kenya - Marsabit | 8,658 | 70,090 | (65,066) | 13,682 |
| Tanzania - Morogoro OMC | 10,732 | 42,780 | (43,342) | 10,170 |
| Tanzania - VICOBA | 13,809 | 23,500 | (34,437) | 2,872 |
| Democratic Republic of Congo | 75,965 | 55,520 | (105,816) | 25,669 |
| Uganda - Karamoja | 39,932 | 35,957 | (66,639) | 9,250 |
| Burundi | 43,486 | 40,896 | (83,237) | 1,145 |
| Myanmar | – | 250 | – | 250 |
| Bolivia | 1,316 | 1,879 | – | 3,195 |
| South Sudan | 37,815 | 161,370 | (37,328) | 161,857 |
| Kenya - Baringo | 4,964 | 15,000 | (19,964) | - |
| Kenya - Mombassa | 31,954 | 17,000 | (43,419) | 5,535 |
| Rwanda | 10,475 | 76,703 | (69,625) | 17,553 |
| South Sudan - Wandi | – | 37,500 | (37,343) | 157 |
| South Sudan - Terekeka | – | 26,000 | (20,450) | 5,550 |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | |
| 299,249 | 668,329 | (680,557) | 287,021 |
|
| ================================ | ================================ | ================================ | ================================ |
29
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
| At | ||||
|---|---|---|---|---|
| At | 31 Dec 2022 | |||
| 1 Jan 2022 | Income | Expenditure | As restated | |
| £ | £ | £ | £ | |
| Kenya - General | 21,505 | 7,450 | (28,947) | 8 |
| Kenya - Kericho | 22,069 | 21,000 | (41,792) | 1,277 |
| Kenya - WECODET | 16,166 | 60,484 | (57,792) | 18,858 |
| Kenya - Marsabit | 19,334 | 48,372 | (59,048) | 8,658 |
| Tanzania - Morogoro OMC | 6,195 | 43,283 | (38,746) | 10,732 |
| Tanzania - VICOBA | 25,679 | 17,000 | (28,870) | 13,809 |
| Democratic Republic of Congo | 13,024 | 143,023 | (80,082) | 75,965 |
| Uganda - Karamoja | 41,910 | 47,406 | (49,384) | 39,932 |
| Burundi | 94,324 | 40,465 | (91,303) | 43,486 |
| Myanmar | – | – | – | – |
| Bolivia | 101 | 1,215 | – | 1,316 |
| South Sudan | 2,133 | 95,941 | (60,259) | 37,815 |
| Kenya - Baringo | 28,831 | 16,000 | (39,867) | 4,964 |
| Kenya - Mombassa | 21,487 | 45,000 | (34,533) | 31,954 |
| Rwanda | – | 70,000 | (59,525) | 10,475 |
| South Sudan - Wandi | – | – | – | – |
| South Sudan - Terekeka | – | – | – | – |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | |
| 312,758 | 656,639 | (670,148) | 299,249 |
|
| ================================ | ================================ | ================================ | ================================ |
General funds
These represent the free funds of the Charity which are available to meet its policies and objectives as set out in the Trustees' Report and are not designated for particular purposes.
Restricted funds
Donations restricted for funding the cost of specific Five Talents programmes in the countries and regions listed above.
25. Analysis of net assets between funds
| Analysis of net assets between funds | |||
|---|---|---|---|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Tangible fixed assets | 813 | – | 813 |
| Current assets | 310,787 | 269,418 | 580,205 |
| Creditors less than 1 year | (16,082) | (18) | (16,100) |
| -------------------------------- | -------------------------------- | -------------------------------- | |
| Net assets | 295,518 | 269,400 | 564,918 |
| ================================ | ================================ | ================================ | |
| Total Funds | |||
| Unrestricted | Restricted | 2022 | |
| Funds | Funds | As restated | |
| £ | £ | £ | |
| Tangible fixed assets | 1,669 | – | 1,669 |
| Current assets | 235,757 | 301,447 | 537,204 |
| Creditors less than 1 year | (11,702) | (3,480) | (15,182) |
| -------------------------------- | -------------------------------- | -------------------------------- | |
| Net assets | 225,724 | 297,967 | 523,691 |
| ================================ | ================================ | ================================ |
30
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
26. Prior year statement of financial activities as restated
| Restricted | |||
|---|---|---|---|
| Unrestricted Funds | Funds | Total Funds | |
| £ | £ | £ | |
| Donations and legacies | 554,572 | 656,639 | 1,211,211 |
| Investment income | 1,003 | – | 1,003 |
| Other income | 107 | – | 107 |
| -------------------------------- | -------------------------------- | ----------------------------------------- | |
| Total income | 555,682 | 656,639 | 1,212,321 |
| Expenditure on raising funds: | |||
| Costs of raising donations & legacies | 127,703 | – | 127,703 |
| Expenditure of charitable activities | 394,962 | 670,148 | 1,065,110 |
| -------------------------------- | -------------------------------- | ----------------------------------------- | |
| Total expenditure | 522,665 | 670,148 | 1,192,813 |
| -------------------------------- | -------------------------------- | ----------------------------------------- | |
| Net (expenditure) / income | 33,017 | (13,509) | 19,508 |
| ================================ | ================================ | ================================ | |
| Total Funds brought forward | 191,425 | 312,758 | 504,183 |
| -------------------------------- | -------------------------------- | ----------------------------------------- | |
| Total Funds carried forward | 224,442 | 299,249 | 523,691 |
| ================================ | ================================ | ================================ |
27. Financial instruments
The carrying amount for each category of financial instrument is as follows:
| 2023 | 2022 | ||
|---|---|---|---|
| £ | £ | ||
| Financial assets that are debt instruments measured at amortised cost | |||
| Financial assets that are debt instruments measured at amortised | |||
| cost | 571,709 | 497,256 | |
| ================================ | ================================ | ||
| Financial liabilities measured at amortised cost | |||
| Financial liabilities measured at amortised cost | 16,101 | 15,152 | |
| ============================ | ============================ | ||
| Analysis of changes in net debt | |||
| At | At | ||
| 1 Jan 2023 | Cash flows | 31 Dec 2023 | |
| £ | £ | £ | |
| Cash at bank and in hand | 437,589 | (75,142) | 362,447 |
| Current asset investments | – | 166,921 | 166,921 |
| -------------------------------- | -------------------------------- | -------------------------------- | |
| 437,589 | 91,779 | 529,368 | |
| ================================ | ================================ | ================================ |
28. Analysis of changes in net debt
31
Five Talents UK Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2023
29. Operating lease commitments
The total future minimum lease payments under non-cancellable operating leases are as follows:
| 2023 | 2022 | |||
|---|---|---|---|---|
| £ | £ | |||
| Not later than | 1 | year | 5,360 ======================= |
6,253 ======================= |
30. Related parties
Five Talents International
Five Talents International is the organisation that owns the rights to the "Five Talents" name. Up to 3 members representing Five Talents UK Ltd sit on the board of Five Talents International. No transactions have taken place in the period and no amounts are outstanding at the end of the year.
Five Talents US
Five Talents US is classed as a member organisation of Five Talents International. During the year Five Talents UK paid £93,648 (2022: £58,273) to Five Talents US for projects in South Sudan.
Five Talents Kenya
Five Talents Kenya is a member of the Five Talents Family, formed in 2016 to help replicate programmes in Kenya. During the year £75,890 (2022: £77,818) was paid to Five Talents Kenya for the overseeing and supporting projects in Kenya.
During the year, Trustees made donations to Five Talents totalling £9,995 (2022: £40,196). There were no conditions attached which required the charity to significantly alter the nature of its existing activities.
32