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2020-12-31-accounts

Appendix B

Charity Registration No. 1115741 Company Registration No. 5750186 (England and Wales)

DAI UK

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

DAI UK

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr J A Flewitt
Mr I M Derbyshire
Mr C J Matthews (Chair)
Mr J S Rogers (Appointed 23 January 2020)
Ms F Stevenson (Appointed 23 July 2020)
Revd Dr M Prior (Appointed 23 July 2020)
Charity number 1115741
Company number 5750186
Registered office and 25 Gordon Road
Principal office Windsor
Berkshire
SL4 3RG
Independent examiner Frances Wilde FCCA DChA
Warner Wilde
Chartered Certified Accountants
4 Marigold Drive
Bisley
Surrey
GU24 9SF
Bankers Barclays Bank PLC
Town Gate House
Church Street East
Woking
Surrey
GU21 6XW
Solicitors Lawson Lewis Blakers
11-12 Hyde Gardens
Eastbourne
East Sussex
BN21 4PP
Accountants Elizabeth Sanders Limited
25 Gordon Road
Windsor
Berkshire
SL4 3RG

DAI UK

CONTENTS

Page
Trustees' report 1 - 7
Independent examiner's report 8
Statement of financial activities 9
Balance sheet 10
Notes to the financial statements 11 - 18

DAI UK

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees, who are also directors for the purposes of company law, present their report and the unaudited financial statements of the company for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

THE TRUSTEES

The Trustees who served the company during the period were as follows:

Mr I M Derbyshire Mr J A Flewitt Mr C J Matthews Rev P Simpson (resigned 23[rd] January 2020) Mr R Willison Mr J S Rogers (appointed 23[rd] January 2020) Ms F Stevenson (appointed 23[rd] July 2020) Revd. Dr. M Prior (appointed 23[rd] July 2020)

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

DAI UK is a charitable Company Limited by Guarantee. The company was established in 2006 under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £10. DAI UK is part of the worldwide ministry of Development Associates International whose Head Office is in Colorado Springs USA.

Recruitment and Appointment of the Board of Directors (Trustees)

The Directors of the company are also Charity Trustees for the purposes of charity law and under the company's Articles are known as members of the Board of Directors. The Memorandum and Articles of Association require that at each annual general meeting, one third of the Trustees retire by rotation and may, if eligible, offer themselves for re-election.

Trustees bring a variety of skills to the Board including, business & mission management, marketing experience, financial management, current first-hand knowledge of international issues, local UK Church supporter knowledge, charity management and charity law experience.

The Board keeps its work and composition under review and ensures that the composition of the Board remains adequate to ensure the strategic development of the company's work and proper oversight of its operations. Using its “Board Diversity, Experience and Skills inventory” identifies strategic gaps in its composition and takes steps to fill them.

Any new Directors (Trustees) who may be recruited are likely to be sought from people known to the Board, senior staff or those closely associated with the charity, and who can provide the necessary specialist skills and experience to ensure the effective working of the Board and the development of DAI UK's ministry.

Trustee Induction and Training

New Trustees are provided with a copy of the Memorandum and Articles of Association of the company and a copy of the Charity Commission's booklet "The Role and Responsibility of Charity Trustees". New Trustees are encouraged to spend some time with senior staff to gain a proper understanding of DAI's work. The need for Trustee training is kept under review and appropriate training will be undertaken if the need is identified.

The Board has approved a policy which encourages Board members to accompany senior staff of the charity on specific training sessions particularly in the UK, in order to deepen their understanding of DAI's work and/ or to take part in teaching in DAI courses.

The Senior Consultant keeps the Board well informed on a whole range of matters concerning the development of DAI UK’s ministry and future plans for growth. 

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DAI UK

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

Risk Management

The Trustees have considered the major risks facing the charity and the steps already in place to mitigate those risks. The review carried out each year records the risks identified, the steps in place to mitigate those risks and any actions required to further improve risk management.

Procedures are in place to safeguard the health and safety of staff, especially when working from home, with special attention given to the assessment of the risks both staff and volunteers face when travelling to areas of the world with known higher risks. DAI's Risk Policy document sets out the Board's attitude to risk, the organisation and responsibility for managing health and safety matters as well the specific arrangements for dealing with problems should they arise. Internal control risks are minimised by the implementation of appropriate systems and procedures including the segregation of authorisation of expenditure and payments.

DAI UK remains dependent on Development Associates International for a significant part of its funding. As DAI UK is now establishing itself as primarily a ministry to the UK, Development Associates International will seek to continue their support while DAI UK works towards becoming self sufficient over the next few years.

The Company's Reserves Policy has been formulated so that monies held in reserve are generated from UK giving.

Organisational Structure

2020 has continued to be a time of transition for DAI UK. On 1[st] January 2020, Liz Taylor was appointed as DAI UK’s Senior Consultant for UK Ministries and remains its only employee. Liz has researched and provided advice on the viability of DAI UK providing leadership training to leaders of diaspora communities and overseas student communities in the UK. In addition, Liz’s work has led to the establishment of partnerships with a number organisations and groups which will provide platforms for growth in the coming years and she has also provided consultancy advice to DAI Nepal and DAI South Asia.

Currently the Board of Directors (Trustees) is drawn from a variety of professional and charity backgrounds relevant to the work of the charity.

Related Parties

Development Associates International (DAI) provides the corporate identity for DAI's work worldwide. DAI also provides a significant part of the funding for DAI UK at this time.

OBJECTIVES AND ACTIVITIES

The Charity Commission's general guidance on public benefit is borne in mind when reviewing our aims and objectives and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

The company's objects and principal activities are, to use all the resources at its disposal for religious, educational and charitable purposes and specifically to enhance the effectiveness and integrity of Christian leaders by providing leadership development training courses, management consultancy and mentoring.

It has been agreed with Development Associates International that in meeting these objectives , DAI UK should focus mainly, but not exclusively, on serving the needs of the Diaspora Churches and Overseas Student Communities in the UK. DAI UK will also continue to provide Facilitators and support for DAI’s Masters Degree Courses around the world and consultancy support overseas as and when needed.

ACHIEVEMENTS AND PERFORMANCE: DAI UK OVERVIEW

DAI UK is a member of the family of ministries which make up DAI as an international entity. As reported last year, as a result of the detailed research work carried out in 2019 by Liz Taylor, and in agreement with DAI’s International Board, the UK Board decided to specifically engage in providing leadership workshops for the Nepali church in the UK and to work in partnership with an international student-focused ministry in Leeds to deliver leadership training materials. Research would continue to explore the potential for working with other diaspora and student communities and to be intentional about linking more closely with the DAI Ministry centres in India and Nepal.

We reported last year on the plans we had for 2020 but the impact of the Coronavirus pandemic inevitably delayed the implementation of some of those plans. Nonetheless, much was achieved in the past year and has encouraged us to plan ambitiously for 2021.

One of the key expectations for 2020 was that the Servant Leadership course, originally written as two interactive workshops each of a week in length, could be adapted and used to develop the leadership skills among the Nepali community resident 

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DAI UK

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

in the UK. An initial workshop on Servant Leadership was held in January where 4 Nepali church leaders participated in taster sessions on the material. This was received enthusiastically and plans were made to deliver the full course on a regional basis. But with the advent of the pandemic, plans were put on hold. Discussions were held in the autumn of 2020 to look at the viability of conducting the workshops on line but at that time the Nepali community felt that they were overloaded with online meetings and would prefer to wait for face to face training. This was reviewed again at the end of 2020 and plans are being made for on line learning to commence early in 2021.

In addition to working with the Nepali community in the UK, DAI had plans to develop relationships with a number of other diaspora church groups, including Korean churches. This has been much slower to develop than was envisaged partly because several key people have changed their organisational roles but mainly because it has proven far harder to develop trust, especially with diaspora leaders, through on line and phone connections. But some new contacts were identified in the autumn of 2020 that are expected to lead to new partnerships in 2021.

Unexpectedly though, DAI UK has been able to facilitate multi cultural online workshops based on DAI’s well researched Culture, Ethnicity and Diversity course materials. This was part of DAI’s UK response to the rise of international concern in racism following the death of George Floyd in America. So far, two online courses have been held, each of five workshops and has involved people from seven different ethnic backgrounds from their mid twenties to late sixties. These two courses have had great feedback and there are plans to have a rolling schedule in 2021 and to train facilitators to extend the use of them.

Work with two organisations that have overseas students as their prime focus has been on-going during the year. Elements of the DAI Servant Leadership and Culture, Ethnicity and Diversity courses have been embedded into the Apprenticeship programme led by the charity, Transformations Leeds. This is a course for graduate overseas students most of whom are developing their leadership understanding and skills prior to a return to their home countries. As part of this the DAI UK Senior Consultant was able to contribute in the delivery of online sessions and provide mentorship to one of the participants of the Apprenticeship course which has proved a valuable learning experience for both. That student has since returned to Rwanda to take up a position as a Dr. in Public Health.

Links have also been made with Friends International in the south of England. This is a well established organisation that supports overseas students at British Universities. Over the summer the senior consultant participated in online support for students hoping to come to Southampton or Winchester in autumn 2020 or early 2021. In addition a volunteer from Friends International has participated in the Culture, Ethnicity and Diversity course and plans are being developed to offer this to all staff, volunteers and support churches of Friends International in the Solent area. The DAI Senior Consultant has also been an observer on the Friends International Life Leadership course and has assisted in mentoring a Chinese student.

Contacts have also been made with a number of other organisations that are involved with leadership training. Many are seeking to improve their engagement with UK residents from minority groups who are under-represented on staff and as clients or students. Waverley Abbey is one such organisation that DAI UK hopes to work in partnership with in the coming year.

Due to the pandemic, facilitators from the UK have not been able to join their DAI colleagues in participating in face to face facilitation of the Masters’ Degree in Organisational Leadership (MAOL) in the way that was originally planned. However, the DAI Maol team were able to make available all the course materials online and in the process also made student online interaction, grading and course administration much more effective. Lasting benefits that will serve students and staff well in the future. In all, 18 residencies were held in 2020 which was a major achievement.

In a number of other areas global links have been enhanced in 2020. As planned, the Senior Consultant, Liz Taylor, was able to undertake a 6 week trip in February and early March to India and Nepal as part of her orientation to working for DAI. This was very fruitful in terms of developing her understanding of the MAOL and since then she has offered on line support to 4 students who had fallen behind in their studies and who have been enabled to completed their degrees. Liz was also able to find out more about a number of other DAI courses by meeting facilitators and and also meeting those who have been impacted through the courses.

In addition to this the desire of DAI UK to support the DAI Nepal office has been furthered. The UK Senior Consultant has been able to offer online support to the DAI Nepal staff who are undertaking an evaluation of the last 10 years of ministry in Nepal. The evaluation is now well underway with surveys currently being administered, a full report should be available in summer 2021.

As a result of this input the UK consultant was also asked to help with the planning and evaluation of a partner training agency in Nepal – Learning Training and Development. The mid term plans of this organisation have now been approved by the local 

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DAI UK

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

board and plans are underway to conduct an evaluation and consultation that will inform the longer term strategy.

In addition to all of the above significant work has been undertaken in reviewing all DAI UK policies and procedures ensuring they are fit for the new work DAI UK is undertaking and also meet all UK rules and regulations for charities. Plus finances have been raised to support international projects including emergency relief related to the COVID pandemic.

During the year £18,624 was given in the UK specifically for international projects of which £6,633 was for COVID relief and £1,455 for the Nepal Flood relief.

FINANCIAL REVIEW

Developing income from UK sources continues to be a challenge and donations from individuals, Churches and Trusts in the UK decreased in 2020.

Income from UK sources for 2020 was £22,632 (£37,484 in 2019). Of this £18,624 (£34,611 in 2019) was restricted income for specific international projects which DAI UK is supporting.

DAI US continues to provide a significant part of the operational funding required by DAI UK. In 2020, DAI US underwrote £14,434 of the operating costs of DAI UK (£8,140 in 2019). With limited staff, there has been no concentrated effort to increase UK sources of funding during 2020. However, the Board will re-establish efforts to increase UK sources of funding once we have more staff in place and recognises that this will require significant dedicated effort.

In terms of regular donor support, total income from individual donors decreased to £17,384 (£24,764 in 2019).

Investment Policy

There are no restrictions on the charity's power to invest. Given the small sums of money currently involved and the limited objectives of such investment, the investment strategy is determined solely by the Trustees. The overall investment policy is to protect the value of the capital and preserve, as far as is possible, the real value of the capital by seeking returns to mitigate the impact of inflation. It is considered that this policy is best implemented, at this time, by investing cash in an interest savings account without exceeding the maximum sum covered for the chosen deposit-taking institution of the Deposit Protection Scheme administered by the FSCS.

Reserves Policy

DAI UK remains significantly dependent on income from Development Associates International (DAI) to fulfil its objects. However, as part of its Risk Management process, Trustees concluded that, should funds from DAI US cease to be available, the current main liability would be meeting the employment costs of staff for three months and have established a reserve fund which at the year-end amounted to £12,035 (2019: £12,786).

PLANS FOR FUTURE PERIODS

Given the fundamental change of direction of DAI UK’s ministry, the UK Board completely reviewed its Vision and Mission Statements towards the end of 2020 and produced a new Strategic Plan for the coming years. From that process, the plans that have emerged for 2021 identified against the main development themes are to:

1 Facilitate Learning for Leadership in the UK

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DAI UK

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

2 Governance and Leadership

3 UK Fundraising

4 International Ministry

DAI UK’s Board records its grateful thanks to Liz Taylor for her insightful work in spearheading the research into training opportunities for DAI in the UK and for establishing such excellent partnerships with other organisations which are already producing benefits for their members and beneficiaries.

DAI - INTERNATIONAL OBJECTIVES AND ACTIVITIES

DAI’s objects and principal activities are to use all the resources at its disposal for religious, educational and charitable purposes, and specifically to enhance the effectiveness and integrity of Christan leaders worldwide by providing leadership development training courses, management consultancy and mentoring.

These objectives are met through four core functions as follows:

Education

DAI provides training and education uniquely geared to the needs of Christian leaders and trainers in Africa, Asia, Latin America, the Middle East, parts of Europe and Russia. These programmes are made accessible in a variety of formats but mainly through training Workshops and distance learning. DAI provides a variety of leadership training courses in three main formats:

Mentoring

DAI helps experienced leaders to share their knowledge and skills with new and emerging leaders by providing them with training and support so they can help younger leaders apply what they are learning to their own lives and work.

Consulting

DAI provides short-term management consultancy to leaders and their organisations to help them find the right solutions to the challenges they face in terms of organisational development, financial management, adult-learning and research and evaluation. 

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DAI UK

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

Connecting

DAI works together with other organisations and their leaders to develop leadership training and development programmes to meet their organisational needs. DAI also works in partnership with similar ministries to create and deliver leadership development programmes for others. DAI is committed to fostering partnership working between other organisations to meet their goals.

DAI UK has been involved in providing input for these activities specifically by providing training for DAI staff, teaching within DAI's established MA Degree programme and building adult learning skills in leaders and trainers of partnering organisations.

ACHIEVEMENTS AND PERFORMANCE: INTERNATIONAL OVERVIEW

Although Internationally 2020 was the most challenging in DAI’s history, there was continued substantial growth in DAI's global ministry. While the pandemic restrictions limited DAI’s face to face interactions with students, there was amazing growth in the numbers of leaders who benefitted from DAI’s digital training courses.

During 2020, DAI served a total of 135,440 leaders globally (57,528 in 2019). These numbers were made up of:

The global COVID 19 Pandemic had an impact in just about every area of DAI’s international ministry. DAI’s staff found themselves in a unique position within their communities and they were able to access funds and resources and target them to support those most in need. Overall, some $427,053 was given for these relief efforts across the DAI family.

DAI’s global income in 2020 was $5,313,042 ($5,421,639 in 2019).

DAI has Ministry Centres in 39 countries including Argentina, Columbia, Costa Rica, Cuba, Ecuador, Haiti, Mexico, Peru, Burkina Faso, Burundi, Cameroon, Cote d’Ivoire, DRC, Senegal, Togo, Kenya, Nigeria, Mmalawi, South Sudan, South Africa, Uganda, Russia, Sweden, Indonesia, Myanmar, Nepal, Sri Lanka, Philippines, China, Canada, Iceland, USA, United Kingdom and a number of countries in the Middle East (details withheld for security reasons), and is working with leaders in another 43 countries.

Every DAI Ministry Centre charges a locally appropriate amount for its Workshops and other services. In addition to charging Workshop fees, they endeavour to raise local donations and gifts in kind.

Working with other Christian organisations has always been one of DAI’s core practices. The very mission of DAI is to build healthier leaders and healthier ministries who can do their work more effectively. As a result, DAI responds to the requests of churches, mission agencies, NGOs, schools, government offices or hospitals. For example, we work in partnership with local universities, seminaries and Bible colleges to provide the MA in Organisational Leadership. But we partner with other organisations as well.

DAI continues to see growing instability in the nations where the organisation serves, resulting in unprecedented challenges for Christian leaders to be the salt and light that is even more desperately needed in these places. These leaders know they need help and ongoing growth to lead in such challenging environments. This provides the motivation for DAI to continue to improve the quality of everything it does and thus expand and deepen its impact in the lives of the incredible leaders it has the privilege to serve. 

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DAI UK

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

INDEPENDENT EXAMINER

Warner Wilde Limited has been appointed as Independent Examiner for the ensuing year.

Registered Office: 25 Gordon Road Windsor Berks SL4 3RG

Signed on behalf of the Trustees

Chris Matthews

signed on 22/07/2021, 18:43:59 BST Mr. Chris Matthews ........................................ 

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DAI UK

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF DAI UK

I report to the trustees on my examination of the financial statements of DAI UK (the charity) for the year ended 31 December 2020.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

signed on 23/07/2021, 11:23:56 BST

Frances Wilde FCCA DChA

Warner Wilde Chartered Certified Accountants 4 Marigold Drive Bisley Surrey GU24 9SF 

23/07/2021

Dated: .........................

DAI UK

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income and endowments from:
Donations and legacies
3
21,417
18,624
Investments
4
14
-
Other income
5
92
-
Total income
21,523
18,624
Expenditure on:
Charitable activities
6
22,274
23,625
Net (expenditure)/income
for the year/
Net movement in funds
(751)
(5,001)
Fund balances at 1
January 2020
12,786
5,100
Fund balances at 31
December 2020
12,035
99		 TotalUnrestricted
Restricted
funds
funds
2020
2019
2019
£
£
£
40,041
20,663
34,612
14
40
-
92
-
-
40,147
20,703
34,612
45,899
20,685
29,512
(5,752)
18
5,100
17,886
12,768
-
12,134
12,786
5,100		 Total
2019
£
55,275
40
-
55,315
50,197
5,118
12,768
17,886

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

All income and expenditure derive from continuing activities.

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

DAI UK

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Current assets
Cash at bank and in hand
Creditors: amounts falling due within
one year
10
Net current assets
Income funds
Restricted funds
12
Unrestricted funds		 2020
£
16,923
(4,789)		 £
12,134
99
12,035
12,134		 2019
£
21,785
(3,899)		 £
17,886
5,100
12,786
17,886

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

21/07/2021

The financial statements were approved by the Trustees on .........................

Chris Matthews

.............................. signed on 22/07/2021, 18:43:59 BST Mr C J Matthews (Chair) Trustee

Company Registration No. 5750186

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

DAI UK

1 Accounting policies

Charity information

DAI UK is a private company limited by guarantee incorporated in England and Wales. The registered office is 25 Gordon Road, Windsor, Berkshire, SL4 3RG.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

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

1.2 Going concern

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

1.3 Charitable funds

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

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

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

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

The value of any volunteer help is not included in the accounts, with the exception of the provision of professional services which would be valued and included as a gift in kind in voluntary income and a corresponding cost in the relevant category.

DAI UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

1.6 Cash and cash equivalents

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

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

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

Derecognition of financial liabilities

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

1.7 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.8 Retirement benefits

The charity operates a defined contribution pension scheme. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme.

1.9 Foreign exchange

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

1.10 Debtors

Prepayments are valued at the amount prepaid after taking account of any discounts due.

DAI UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.11 Creditors

Creditors are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due can be measured or estimated reliably.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Donations and gifts
3,902
18,624
Grants receivable for
core activities
17,515
-
21,417
18,624
Donations and gifts
Donations from
individuals
3,051
11,297
Gift Aid Tax recovered
701
2,335
Donations from
Churches
150
4,992
Donations from Trusts
and Foundations
-
-
Donations from other
organisations
-
-
3,902
18,624		 TotalUnrestricted
Restricted
funds
funds
2020
2019
2019
£
£
£
22,526
2,833
34,612
17,515
17,830
-
40,041
20,663
34,612
14,348
2,190
18,704
3,036
643
3,228
5,142
-
2,180
-
-
5,000
-
-
5,500
22,526
2,833
34,612		 Total
2019
£
37,445
17,830
55,275
20,894
3,871
2,180
5,000
5,500
37,445
Grants from DAI US are made up as follows: Grants from DAI US are made up as follows:
For operating costs £14,434
MA costs £ 3,081

DAI UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

4 Investments
Unrestricted Unrestricted
funds
funds
2020
2019
£
£
Interest receivable 14
40
5 Other income
Unrestricted
Total
funds
2020
2019
£
£
Other income 92
-
6 Charitable activities
Education
Education
and training
and training
2020
2019
£
£
Staff costs 18,675
-
Education and training 18,624
29,512
Travel and accommodation costs 1,476
581
MA costs repaid by DAI US 3,081
8,139
41,856
38,232
Share of support costs (see note 7) 378
1,286
Share of governance costs (see note 7) 3,665
10,679
45,899
50,197
Analysis by fund
Unrestricted funds 22,274
20,685
Restricted funds 23,625
29,512
45,899
50,197

DAI UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7 Support costs

Support
costs
Governance
costs
£
£
Office, finance, travel
and subsistence
306
-
Computer support
72
-
Board expenses
-
-
Accountancy fees
-
2,543
Insurance
-
162
Independent
Examination
-
960
Consulting
-
-
378
3,665
Analysed between
Charitable activities
378
3,665		 2020
Support
costs
Governance
costs
£
£
£
306
261
-
72
1,025
-
-
-
252
2,543
-
2,570
162
-
176
960
-
948
-
-
6,733
4,043
1,286
10,679
4,043
1,286
10,679		 2019
£
261
1,025
252
2,570
176
948
6,733
11,965
11,965

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, and no-one was reimbursed for travel expenses.

9 Employees

Number of employees

The average monthly number of employees during the year was:

2020 2019
Number Number
Management staff 1 -
Employment costs 2020 2019
£ £
Wages and salaries 18,000 -
Other pension costs 675 -
18,675 -

There were no employees whose annual remuneration was £60,000 or more.

DAI UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

10 Creditors: amounts falling due within one year

Other taxation and social security
Other creditors
Accruals and deferred income		 2020
£
(354)
4,066
1,077
4,789		 2019
£
-
2,822
1,077
3,899

11 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £675 (2019 - £-).

DAI UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Incoming Resources Balance at Incoming Resources Balance at
resources expended
1		 January 2020 resources expended 31 December
2020
£ £ £ £ £ £
Himalayan Region
"Beloved" sponsorship 375 (375)
-		 375 (375)
-
Himalayan Region - CP
support 1,800 (1,800)
-		 2,100 (2,100)
-
Himalayan Region - D
Tamang 375 (375)
-		 375 (375)
-
UK - Nepal training 5,100 - 5,100 - (5,001)
99
Himalayan Region -
Myanmar Orphanage (CP
project) 450 (450)
-		 450 (450)
-
MA Student Support 600 (600)
-		 600 (600)
-
Polk Support 144 (144)
-		 144 (144)
-
Nepal flood 63 (63)
-		 1,455 (1,455)
-
Translation and other
projects 12,500 (12,500)
-		 - - -
DAI Ukraine 500 (500)
-		 - - -
DAI US/Clark Support 12,705 (12,705)
-		 6,492 (6,492)
-
Himalayan Region - CP -
Covid 19 Children's
Homes Appeal - - - 6,633 (6,633)
-
34,612 (29,512)
5,100		 18,624 (23,625)
99

The restricted funds support project work in specific geographical areas.

13
Analysis of net assets between funds
Unrestricted
income
funds
Restricted
funds
2020
2020
£
£
Fund balances at 31
December 2020 are
represented by:
Current assets/
(liabilities)
12,035
99
12,035
99		 TotalUnrestricted
income funds
Restricted
funds
2020
2019
2019
£
£
£
12,134
12,786
5,100
12,134
12,786
5,100		 Total
2019
£
17,886
17,886

DAI UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

14 Related party transactions

There were no disclosable related party transactions during the year (2019 - none). 

Signatures' technical details

Signatures

getintouch@elizabethsanders.co.uk

22/07/2021, 18:40:48 BST

Fingerprint

2002ff18775c7158c2fcabf4c537e710e78795ec

chris.matthews1@btinternet.com

Fingerprint

22/07/2021, 18:43:59 BST54dd4efbe3d362c31736558a5f7b880be092b8a4

frances@warnerwilde.co.uk

23/07/2021, 11:23:56 BST

Fingerprint

ea132a3a7d3d1989527bf4f0467d2b33763d1fc0

Event log

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Summary
Envelope's ID: 52p5a7j3
Document's hash: 86a426f7e198f57919bbaaf0e8bb184e12bdd7feaa60690e5a2b65bad1935166
Final stamp: 23/07/2021, 11:23:59 BST

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