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2020-12-31-accounts

Registered Charity No. 1115989 (England & Wales)

BUILD IT INTERNATIONAL

CONSOLIDATED FINANCIAL STATEMENTS (COMPANY LIMITED BY GUARANTEE) YEAR ENDED 31 DECEMBER 2020

REGISTERED COMPANY NO. 05495358 (ENGLAND AND WALES)

www.builditinternational.org

BUILD IT INTERNATIONAL YEAR ENDED 31 DECEMBER 2020

CONTENTS
Legal and Administrative Information 2
Trustees'Report 3
Introduction and Highlights 3
Charitable Operations 3
Review of Activities and Performance against Strategic Objectives 4
Structure, Governance and Management 8
Review of Financial Position 10
Statutory Policies 10
12
Auditor
s Report		 13
Consolidated Statement of Financial Activities 16
Balance Sheets 17
Consolidated Statement of Cash Flows 18
Notes to the Financial Statements 19

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

LEGAL AND ADMINISTRATIVE INFORMATION

Company number 05495358
Charity number 1115989
Governing document Memorandum and Articles of Association
Trustees Ronnie Fleming - Chair
Liz Elston Mayhew
Deputy Chair
Graham Wickenden - Treasurer
Florence Bearman
Chris James
Peter Bedford until 5thMarch 2020
Sharon Jackson from 2ndDecember 2020
Secretary Andrew Jowett
Chief Executive Andrew Jowett
Registered office The Pump House
Coton Hill
Shrewsbury
SY1 2DP
Auditors Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
Bankers Barclays Bank plc.
Business Banking
P.O. Box89
Shrewsbury
Shropshire
SY1 2WQ
Website www.builditinternational.org

2

BUILD IT INTERNATIONAL

YEAR ENDED 31 DECEMBER 2020

INTRODUCTION & HIGHLIGHTS

Our plans for 2020 were significantly affected by the COVID-19 pandemic with delayed activities in Zambia and the postponement of fundraising events in the UK. As a result, we suffered an 18% reduction in income and completed around 70% of our planned programme. In March 2020, at the start of the pandemic, Build It International drew up three objectives:

  1. To ensure the safety of our staff and trainees

  2. To ensure that the charity emerges from the crisis with all critical functions intact

  3. To contribute to the wider COVID-19 response in Zambia

We are pleased to present our annual report outlining developments at Build It International in 2020. This report covers the activities of both Build It International and BII Zambia Ltd. Highlights include:

We estimate that 22,000 people will benefit from our work carried out in 2020. This brings the total to 324,000 direct and indirect beneficiaries since Build It was launched.

In preparing the accounts, the Trustees have followed the accounting policies set out in note 1 to the accounts and comply with the requirements of the governing document, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice 2015.

CHARITABLE OPERATIONS

Build It International was established in 2006 with the aim of supporting the small-scale building sector as a way of creating sustainable employment opportunities and economic growth in low-income countries, mainly in Africa. Our vision is: An Africa in which everyone has the opportunity to work and thrive.

legal objects are:

Mission Statement: to create opportunities for young people and their communities through skills training, work experience and essential community building projects.

Our core values are: Empowerment, Excellence, Collaboration and Courage

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

Our primary activity is entry-level construction skills training for men and women under 35 years old living in poverty in Zambia. This is called Training into Work and is delivered through three pathways: our Centre for Excellence in Lusaka, on-the-job training at our community building projects and thirdly, with partner organisations at other locations. Our livelihoods-based approach also includes post-graduation career development support, especially for females.

Public Benefit

Our programme directly benefits low-income communities and families through skills training and also the water/sanitation facilities. Our approach benefits the public by:

benefit and relief of poverty for public benefit.

REVIEW OF ACTIVITIES AND PERFORMANCE AGAINST STRATEGIC OBJECTIVES

2020 was the fourth year of our Building Brighter Futures strategy that runs until 2023. Our overall aim is to be the leading entry-level vocational training organisation in Zambia. The main objectives are presented below following an analysis of how we fared against our COVID-19 risk management objectives.

COVID-19 Response Objectives

To ensure the safety of our staff and trainees

Build It followed Government guidelines in UK and Zambia and enhanced these with internal COVID-19 protocols covering all areas of operation and travel. We assisted employees to work from home where possible and implemented a range of Health and Safety measures across the organisation. These measures continue to be actively reinforced and monitored, and non-compliance is a disciplinary issue. In addition, Build It has tried to support the well-being of staff through regular contact and access to online resources.

To our knowledge, no staff has contracted COVID-19 but there were instances of self-isolation as a precaution.

To ensure that Build It emerges from the crisis with all critical functions intact

Like most fundraising organisations, we were concerned at the possibility of a drop in income. Budgets were re-worked to postpone discretionary expenditure, freeze recruitment and account for delayed project activity. A short working week of four days was agreed with all staff from 1[st] May until 31[st] July 2020. This allowed us to retain all staff positions. In the event, income was down 18%.

Fundraising adapted to losing planned supporter events by keeping in touch through online events and meetings. Overall, we coped well with the disruption.

To contribute to the wider COVID-19 response in Zambia

We are proud to have quickly and successfully launched two initiatives: Distance Learning (from April) and Safe Hands (July December and continuing). These are discussed in more detail below.

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

Strategic Objective 1: Support at least 2000 men and women through our Training Into Work programme Some 208 trainees entered our programme and 184 graduated (88% against a target of 90%). Our target for the year was 280 graduates but this was compromised by the forced closure of the training centre (20[th] March to 27[th] re COVID-19. The one exception was the Centre for Excellence office. Under the circumstances, this is an excellent result.

This brings the number of graduates since 2017 to 734 or 36% of our strategic target. A total of 1,213 have graduated since the programme commenced.

Trainees by pathway 2017-2020

----- Start of picture text -----
250
200
150
100
50
0
2017 2018 2019 2020
CfE Building Projects Incl CfE to 2020 Partner Training (Outreach) incl 2nd country
----- End of picture text -----

We delivered 10,530 training/days during the year compared with 12,535 in 2019. Entry-level courses delivered: Basic Building Skills, Brick and Blocklaying, Rough Carpentry, Painting and Plastering. Unfortunately, our new Floor and Wall Tiling course had to be postponed until 2021.

The figures include training at our partner Katombora Reform School, Livingstone where 66 young men were trained in bricklaying and rough carpentry. This is under the Rise Again Project, a three-year programme funded by the European Commission where we work in partnership with the NGO Undikumbukire Project.

Graduates included 38 women (21%), a modest rise from the 18% trained in 2019. We continue to explore ways to increase the number of women in our programme.

On closure of the Centre for Excellence, the training team prepared and recorded 30 video lessons that were downloaded onto electronic tablets. These were distributed weekly to the two cohorts of trainees that had been sent home. The programme ran for eight weeks and covered demonstration material, theory, knowledge -19.

Through the remote support of our training consultant, Ralph Need, we continued to invest in the capacity and quality of our Training into Work Programme through staff coaching, course content review and development of further guidelines. We continued to be endorsed by National Open College Network (NOCN) whose annual visit was made virtually.

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

Disruption due to COVID-19 affected the local construction sector which in turn limited our ability to give all trainees work placements. In total, 119 trainees (63%) completed or started their placements in 2020.

Under the Career Development Support component of Training into Work we:

The cost of training per person, including all overheads, ranged from £1,000 to £1400 (2019: £1,045 to £1,615) depending on course and location. The average cost was £1,215.

Strategic Objective 2: Deliver community-led building projects to improve access to education and health services for 150,000 people

Chitukuko and

further investment in the Centre for Excellence training facility. This was compromised by COVID-19 disruption

ouse at Chitukuko. However, we launched and completed 50% of our Safe Hands programme that includes installing multi-person hand washing stands in primary and secondary schools.

----- Start of picture text -----
Project Estimated Direct & Estimated Cost per
Each project is estimated to provide benefit over a life- Indirect Life-Time Beneficiary
time of 25-30 years. Beneficiaries
Light of Hope School, Livingstone: Three classroom block, 4,334 £85 direct
ablution block and teachers house (75% completed) £17 indirect
Centre for Excellence office block and further n/a n/a
landscaping, site works
Katombora Reform School, toilet block (75% completed) 3,000 £15 per juvenile
Safe Hands Phase 1 13,715 £3 per child
----- End of picture text -----

Shifwankula Primary School, hand washing station

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

Strategic Objective 3: Share our experience to support provision and uptake of improved skills training

In 2020 our aim was to define an advocacy strategy and launch the first year of activity. The strategy was signed off by the Board in February 2020 and outlined a range of activities focused on employers, government and other training organisations. The overall aim is to increase spending on skills training and showcase an effective model of quality training provision. Initial two-year funding was secured from the Waterloo Foundation.

Progress during the year was limited due to travel and meeting/event restrictions. However, our Affiliate Contractors team continue to work with around 15 local companies to engage them in our Training into Work programme. In particular, we have promoted safe working environments, learner placements (paid) and a more positive attitude towards female workers.

Working closely with our quality assurance partner NOCN, we submitted our curriculum to the Zambia Qualifications Authority (ZAQA) t o certify two courses.

Strategic Objective 4: Extend our reach to at least one other country beyond Zambia

After good progress in 2019, our research is on hold pending the lifting of COVID-19 travel restrictions.

Impact Monitoring and Evaluation

In 2020, our Training into Work and Community Building programmes will benefit an estimated 22,000 people. This increases our running total to 79,000 since 2017 enabling us to stay on target to reach 150,000 by end 2023.

The cumulative number of life-time beneficiaries since 2006 is estimated at 324,000.

Data collection for the annual Impact Study was delayed from March to November because of travel restrictions in Zambia during the pandemic. The final report was completed by Lifetime Consulting on 5[th] March 2021. Headlines include:

Copies of the full report are available on request and there is a summary on our web-site.

RAISING FUNDS

We raised £1.14M including gifts in kind an impressive result given the pandemic, only 18% down on 2019. Our sincere thanks to all our individual supporters, corporate partners, grant-making foundations including the Oak Foundation, and institutional donors, Irish Aid and the European Commission.

Our approach is to develop a high value, loyal supporter base. To achieve this we aim to engage supporters through regular correspondence and events as well as our website, social media and quality reporting. This is managed by a small team of professional staff based in Shrewsbury. For every £1 spent on raising funds we received £5.53 in income.

We are delighted to have completed the first full year of our Young Professionals Board that supports our fundraising and communications work.

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

Build It International is registered with the Fundraising Regulator that sets and maintains standards for charitable fundraising as detailed in the Code of Fundraising Practice to ensure that we are respectful, open, honest and accountable to the public. The charity actively monitors fundraising activity undertaken on our behalf as far as resources allow. This includes having written agreements in place with corporate partners whose staff fundraise for Build It. The Trustees are satisfied that throughout 2020 the charity complied with the Code and received no complaints.

fundraising is based on building quality relationships with our supporters without the need for intrusion or undue pressure, and to ensure the protection of any vulnerable supporters. We never sell or share their information to other organisations to use for their own purposes. information to be used by suppliers working on our behalf or where we are required to do so by law. We have continued to review and update policies and procedures to ensure compliance with the General Data Protection Regulations (GDPR).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Build It International was formed as a company limited by guarantee in 2005 and became a registered UK charity in September 2006 with a memorandum and articles of association, dated August 2006, as its governing document.

The Directors of the Board (Trustees) are appointed with a view to ensuring that Build It enjoys the skills and f the charity, policies and legal compliance. Trustee indemnity insurance is included in our insurance policies.

Build It is registered in Zambia as BII Zambia Ltd, which is a Company limited by Guarantee. A memorandum of understanding guides the relationship between the UK and Zambia Boards and was renewed in December 2018. The intention outlined in the memorandum of understanding is that BII Zambia is a subsidiary of Build It and, as a result of this, its results are consolidated into those of Build It International.

Our Finance and Audit Committee (FAC) meets ahead of every Board meeting and on an ad hoc basis as required. In May 2020, Build It also established a COVID-19 Risk Management Committee with four Board members including the Chair or Vice Chair from UK and Zambia, members of the FAC, and staff representation to oversee our response to the pandemic. This met seven times between May and December and reviewed three scenarios for impact, risks and action. It continues to meet monthly.

We continue to enjoy the input of a wide range of advisors and volunteers on an individual basis and through our Technical Advisory Group (see website). Their input is highly appreciated.

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

(including four part-time). The

main functions are fundraising, finance and strategy. Our office in Lusaka employs 23 staff who manage programme delivery. The Board would like to thank all staff for their hard work, enthusiasm and professional dedication over the past 12 months, especially during the COVID-19 pandemic.

A Nomination and Remuneration Committee was established in March 2018 to consider Chief Executive and senior staff remuneration and appointments. Other salaries are set by the Chief Executive in consultation with the Finance and Audit Committee as part of the annual budgeting process.

Governance

Trustees are recruited openly. Role descriptions are agreed and the positions advertised through trustee recruitment channels. New Trustees go through a comprehensive induction process that includes: a full set of key documents (all policies, strategy papers and Board minutes) and time with senior staff at the Shrewsbury office when permitted.

Four Board meetings were held in 2020 (attendance) as well as a strategy session: Ronnie Fleming (5/5) Liz Elston Mayhew (5/5) Graham Wickenden (5/5) Florence Bearman (5/5) Chris James (5/5) Sharon Jackson (0/1)

Charity Governance Code The Board signed up to the principles of this comprehensive, voluntary code of practice in December 2017 and adopted the version for large charities. It was due for review in 2020 and a trustee survey of key areas to work on was completed. We are still confident that we are compliant with most aspects of the Code and will draw up an action plan to implement the few remaining items.

In 2020, Build It continued to employ Affinity Resolutions to advise on compliance with GDPR and to act as the viewed and regular training held for staff and Trustees.

All staff and Trustees sign up annually to a Code of Conduct.

In September 2020, the Board appointed haysmacintyre as its external auditors following a competitive tendering process. The Board would like to thank WMT for their many years of much appreciated service as the previous external auditors.

Safeguarding

We recognise the importance of ensuring that children, young people and vulnerable adults associated with our work are safeguarded, and that their health, safety and welfare is promoted while in our programme.

We have a safeguarding policy, approved by the Board, as well as guidelines to guide staff delivering our programme. These are regularly reviewed along with staff training. Please contact us for further information.

Key Objectives for 2021

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

REVIEW OF FINANCIAL POSITION

Income total for the 12 months to 31[st] December was £1,140,879.

Expenditure - £953,132 for the 12 months to 31 December 2020 excluding capital expenditure at the Centre for Excellence

Value of our unrestricted reserves, excluding fixed assets, was £533,761

There is a surplus in the Statement of Financial Activities (SoFA) in 2020 of £187,746. SoFA does not include expenditure of a capital nature (Centre for Excellence construction and vehicle purchases) which is £85,847.

Funds held at 31 December 2020

STATUTORY POLICIES

A schedule of policies is maintained with policies reviewed on a rolling programme at Board meetings.

Risk Management

The Trustees have overall responsibility for ensuring that the charity has an appropriate system of controls, financial and otherwise. The Risk Register is a standing item at every Board meeting whereby significant risks are identified and evaluated and appropriate actions are agreed. The Risk Register is examined more frequently by the Finance and Audit and COVID-19 Committees.

At the Board Meeting in March 2021, Trustees considered that the three highest risks that the charity currently faces in achieving its strategic objectives are disruption from the COVID-19 pandemic; loss of key staff in ; and a major breach of cyber security protection.

COVID-19 pandemic risk management is reviewed frequently by the Senior Management Team and by a specially constituted COVID-19 Committee of the Board of Trustees, which currently meets monthly. The reviews focus on protection of staff and trainees from infection by the virus; the impact on operations in Zambia of restrictions on training and construction activity, and the potential financial impacts on income and expenditure. A reforecast for 2021 has been completed, with unrestricted cash forecast out to mid-2022 and a number of different financial scenarios examined. These forecasts and scenarios are updated as frequently as necessary. As happened during peaks of the pandemic in 2020, we are prepared to act quickly as circumstances change.

As a small charity operating in Zambia, we are not always able to match the staff pay packages of larger and better financed organisations. This means that we are at constant risk of key staff leaving for better paid jobs, once they have gained valuable work experience with Build It. We recognise that we will mostly be unable to match the pay packages of the best paid staff in the third sector and therefore seek to mitigate the risk of the loss of key staff in different ways. We try to achieve this by making our operations more resilient

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

through systems that are less staff-dependent, in areas such as finance and procurement, and by making working conditions as pleasant as possible.

Protecting the charity against cyber-attacks continued to be a major focus in 2020. Staff have regular training and we continue to assess ourselves against the guidelines for small charities from the National Cyber Security Centre. This has become of even greater importance with most staff working from home during the current pandemic. We continue to resource and report this risk to each Board Meeting.

Going concern

In common with many other charities, the impact of COVID-19 has put the assessment of the going concern basis for Build It much higher up the agenda than previously. When the full extent of the pandemic became apparent, management took immediate action to conserve cash, including putting all staff temporarily on a four-day week. Construction projects were temporarily halted or restricted and the Zambian Government halted training at our Centre for Excellence for four months during 2020. In addition, the economic impact of

With the experience of this difficult period of operations under our belts and in particular with the flexible continues to be assured. We have not been able to implement projects as actively as we wished during 2020 and income was undoubtedly reduced due to the uncertain economic environment, both in Zambia and in Europe. The other side of the coin is that we have entered 2021 with temporarily higher than expected levels of unspent reserves. Once the pandemic allows, we will use these reserves to pursue our programmes with increased vigour.

In the meantime, we have forecast our cash consumption out to the middle of 2022 under several sets of different possible conditions. On the basis of these forecasts and based on the experience of our responses finances on a going concern basis continues to be appropriate.

Grant Making Policy

When occasionally a grant is made to another organisation, appropriate checks are undertaken on the partner, an agreement is signed and project delivery is monitored through visits, reports and audits. All but £2,400 of our projects this year were directly managed through our Zambia offices. All project proposals are vetted by the Finance and Audit Committee, and then submitted to Trustees for their approval to ensure that the proposed work is in line with strategy.

Reserves Policy

Reserves are held to deal with unforeseen operational costs or falls in income below expectations and to provide funding for agreed projects. Build It International therefore aims to maintain readily realisable reserves sufficient to cover at least three months of budgeted average core expenditure. The reserves should also, under normal circumstances, not exceed an upper limit of four months average budgeted total expenditure.

At the end of 2020 the value of our unrestricted reserves, excluding fixed assets, was £533,761. The aim in a normal year is for unrestricted rese expenditure. 2020 was far from a normal year and by the year end we had slightly exceeded this upper limit. There were two principal reasons for this: the first being that some of our donors, recognising the difficult conditions posed by the COVID-19 pandemic and to give us extra flexibility, generously made unrestricted donations that would normally have been restricted; and secondly, we took swift action to cut costs, including staff costs, to mitigate the potential risks posed by the pandemic. Since the end of 2020, levels of unrestricted reserves have already begun to revert to more normal levels and are expected to remain there during 2021. Unrestricted reserves as at the 31[st] March 2021 stood at £450,025 in line with expectations.

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

Regular updates on our work are posted on our website: www.builditinternational.org

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also directors of BII for the purposes of company law) are responsible for preparing the Trustees' Annual 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 Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the group, and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and of the group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

SMALL COMPANY PROVISIONS

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the Board and signed on its behalf on 6 May 2021.

Ronald Fleming Chair of Trustees

Graham Wickenden Treasurer

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

Opinion

We have audited the financial statements of Build It International for the year ended 31 December 2020, which comprise the Consolidated Statement of Financial Activities, Balance Sheets, Consolidated 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the 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 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 group'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 trustees are responsible for the other information. The other information comprises the information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on 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.

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the

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:

Responsibilities of trustees for the financial statements

tement set out on page 12, 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 concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free 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.

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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to UK employment law, and local employment laws in Zambia, and we considered the extent to which non-compliance might have a material

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011.

pulation of the financial

statements (including the risk of override of controls), and determined that the principal risks were related to non-compliance with laws and regulations and the processing of journal entries. Audit procedures performed by the engagement team included:

A further description of our responsibilities for the audit of the financial statements is located on the Financial www.frc.org.uk/auditorsresponsibilities. This description forms part of our

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.

Steven Harper (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditor London Date: 13 May 2021

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

Notes
INCOME FROM:
Donations
3
Other Trading Activities
3
Investment income
interest receivable
Profit on sale of assets
Other income
Total
EXPENDITURE ON:
Raising funds
Charitable activities
programme
activities in Zambia
Total
8
NET INCOME/(EXPENDITURE)
4
Transfers between funds
14
NET MOVEMENTS IN FUNDS
4
RECONCILIATION OF FUNDS:
Total funds brought forward at 1
January 2020
TOTAL FUNDS CARRIED FORWARD AT
31 DECEMBER 2020
15		 Unrestricted
Restricted
2020
2019
Funds
Income
Funds
Total
Total
£
£
£
£
652,868
477,320
1,130,188
1,362,196
-
-
-
13,176
2,073
178
2,251
3,630
-
7,917
7,917
-
-
522
522
-
654,941
485,937
1,140,878
1,379,002
190,707
13,719
204,426
257,436
82,783
665,924
748,707
933,033
273,490
679,643
953,133
1,190,469
381,451
(193,706)
187,745
188,533
(308,987)
308,987
-
-
72,464
115,281
187,745
188,533
486,824
736,473
1,223,297
1,034,764
559,288
851,754
1,411,042
1,223,297

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

Excluded from the above is capital expenditure on the Centre of Excellence in the amount of £85,847 (2019: £99,611). In line with the requirements of FRS 102 this has been capitalised on the balance sheet and will be depreciated in line with the accounting policies set out in note 1.

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BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

CONSOLIDATED AND CHARITY BALANCE SHEETS

Notes
FIXED ASSETS
Tangible assets
10
Total fixed assets
CURRENT ASSETS
Debtors
11
Cash at bank and in hand (including advances)
Total current assets
CREDITORS: amounts falling due within one
year
12
Net Current Assets
Net Assets
Funds of the Charity
Unrestricted funds
Restricted income funds
14
Total funds		 2020
2019
Group
BII UK
Group
BII UK (as
restated)
£
£
£
£
524,101
1,777
474,568
2,659
524,101
1,777
474,568
2,659
42,934
34,513
65,283
52,723
981,052
872,744
799,818
783,005
1,023,986
907,257
865,101
835,728
(137,045)
(25,819)
(116,372)
(34,896)
886,941
881,438
748,729
800,832
1,411,042
883,215
1,223,297
803,491
559,288
559,288
486,824
486,824
851,754
323,927
736,473
316,667
1,411,042
883,215
1,223,297
803,491

The net surplus of the charitable company before consolidation was £79,724 (2019: £190,449).

These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with the FRS102 SORP.

The financial statements were approved and authorised for issue by the Board of Directors on 6 May 2021 and were signed below on its behalf by:

Ronald (Ronnie) Fleming Chair of Trustees

Graham Wickenden Treasurer

Company registration no. 05495358 Charity registration no. 1115989

17

BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

CONSOLIDATED STATEMENT OF CASHFLOWS

Notes
NET CASH PROVIDED BY OPERATING ACTIVITIES
A
NET CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of land & buildings
Purchase of equipment
Purchase of land, buildings and equipment
Proceeds from sale of assets
Increase/(Reduction) cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2020
2019
£
£
257,136
254,164
(85,847)
(99,611)
-
(37,942)
(85,847)
(137,942)
9,945
1,990
181,234
118,601
799,818
681,217
981,052
799,818

Analysis of cash and cash equivalents

Cash and cash equivalents comprise solely cash at bank and in hand for both the current and prior year.

A. NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES

Operating Cash Flows
Operating surplus
Adjustments for items not affecting cash flows:
Depreciation on fixed assets
(Gain)/Loss on sale of assets
Net operating cash flows before reinvestment in
working capital
Reduction/(increase) in debtors
Increase in creditors
Net cash provided by operating activities		 187,746
188,533
34,287
41,807
(7,917)
4,723
214,116
235,063
22,349
(3,986)
20,671
23,087
257,136
254,164

18

BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

(a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition, effective 1 January 2019) (Charities SORP (second edition) (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. No changes have been required to the financial statements following the adoption of the second edition of the Charities SORP. Build it International 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 note(s). Advantage has been taken of the exemption in paragraph 1.12 of FRS102 not to prepare a parent company cash flow statement.

(b) Going Concern

The Board at the time of signing these Accounts have considered that for at least the next twelve months the charity is a going concern. See the main report and note 20 for information on the impact of COVID-19.

(c) 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 for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that the actual outcomes could differ from those estimates. There are no judgements made that have a significant effect on the amounts recognised in the financial statements.

(d) Income

Income represents donations and grants received which are brought into account on receipt unless their receipt is probable in which case they are brought into account when notified. Grants received in advance are shown as income. Gifts in kind are recognised on receipt and are valued at best estimate to the organisation.

Fundraising events participation fees are recognised as income on completion of the event.

(e) Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the item is probable and that economic benefit can be measured reliably. In accordance report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

(f) Interest receivable

Interest on funds held on deposit is included when earned and the amount can be measured reliably by the charity.

19

BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

(g) Fund Accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the trustees in furtherance of the general charitable objectivities.

Restricted funds are subject to specific restrictions funds as imposed by the donors.

(h) Expenditure

Expenditure is recognised when a liability is incurred.

Cost of raising funds includes those costs incurred in attracting donations.

Charitable activities includes grants made to African NGOs to fund their charitable activities. These costs include both direct costs and support costs relating to these activities.

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with use of resources, e.g. salary by time spent within that activity.

(i) Irrecoverable VAT

The charity is not registered for VAT therefore irrecoverable VAT is included with the costs to which it relates.

(j) Operating leases

Rentals payable under operating leases are charged against income on a straight-line basis over the lease term.

(k) Tangible fixed assets

Tangible fixed assets are shown at cost. Asset with a purchase cost above £1,000 are capitalised.

Depreciation is calculated to write down the cost of assets to their estimated residual values over their expected useful lives as follows:

Land 0% on cost
Buildings 2.85% on cost
Office Equipment and furniture 25% on cost
Motor Vehicles 25% on cost
Services & Site works 10% on cost
Landscaping 20% on cost

Assets under construction are buildings and infrastructure which are incomplete. Depreciation will commence when completed and put into use.

(l) Debtors

Debtors are recognised at the amount due. Prepayments are valued at the amount prepaid.

(m) Cash at Bank and in hand

Cash at bank and cash 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 amount.

20

BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

(n) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement account.

(o) Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

(p) Pension Contributions

Since 1 March 2015 Build It International in the UK has offered non-temporary employees membership of a new non-temporary employee -existing employees have been allowed to retain employer contributions to pre-existing personal pension schemes. The -Enrolment staging date was 1 March 2 comply with those obligations. The terms and conditions of employees of Build It in Zambia follow the requirements and norms applicable to Zambia; which include direct contributions to the Government-run National Pension Scheme Authority (NAPSA) pension scheme.

Build It International had a defined benefit pension scheme.

(q) Settlement payments

Redundancy and settlement payments are recognised at the leaving date of the member of staff and measured at the best estimate of expenditure required to settle the obligation at the reporting date.

(r) Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transactions. All differences are taken to the SoFA.

(s) Risk Management Policy

The charity has a Currency Risk Management Policy that is used to guide the purchase of forward contracts. This has the objective of covering 40%-50% of anticipated foreign currency requirements over the next 12 months; weighted to covering more shorter-term funding requirements and to cover less than 9-12 months ahead. At a virtual meeting held on 5th November 2020, the Board agreed with the Finance & Audit icy and to cease the purchase of forward contracts. This decision, which is under continuous review, was taken in the light of a continuous and continuing significant depreciation of the Zambian Kwacha against all major currencies.

(t) Basis of consolidation

The financial statements consolidate the results of the UK charitable company and its subsidiary, BII Zambia on a line-by-line basis.

2. LEGAL STATUS OF THE CHARITY

The Charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

21

BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

3.
INCOME FROM DONATIONS
Individuals
Grants from foundations and trusts and other organisations		 2020
2019
£
£
160,309
413,506
969,879
948,690
1,130,188
1,362,196

Grants from foundations and trusts and other organisations includes donations of services and materials totalling £5,000 (2019: £12,208) and £nil (2019: £365) for provision of meeting facilities, and £nil (2019: £1,283) for materials, and £nil (2019: £10,560) for training and professional services.

We greatly value all the individuals who donate money to our work. Some of these individuals give very large amounts depending in part on their personal circumstances and enthusiasm for particular projects. In 2019 one project in particular caught the imagination of a donor, with support in excess of £150,000. In 2019 too we ran a successful Cycle Challenge event in Zambia generating significant donations. We are reassured by the continuing encouragement and support we receive from individual donors who like us are looking forward to new projects and fundraising events, both of which were affected by the COVID-19 pandemic.

Other trading activities comprise payments for participating in fundraising events.

4. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
2020 2019
£ £
Net movement in funds is stated after charging:
Depreciation of tangible assets 34,287 41,807
UK auditors remuneration 13,200 7,800
Operating lease rentals
land and buildings		 11,844 10,795
Recognised exchange differences (gain)/Cost (6,901) (6,546)

5. STAFF COSTS (UK & ZAMBIA)

STAFF COSTS (UK & ZAMBIA)
Wages and salaries
Social security costs
Other pension costs		 2020
2019
£
£
449,930
489,973
28,550
29,096
19,646
20,887
498,126
539,956

22

BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

5. STAFF COSTS (UK & ZAMBIA) (continued)

Direct employees (i.e. excluding contract workers)

UK- based staff
Zambia-based staff
Group Total		 2020
Part-time
Full-time
Total
4
4
8
-
26
26
4
30
34		 2019
Part-time
Full-time
Total
4
4
8
-
24
24
4
28
32

The average number of employees (full-time and part-time) in the year was 31 (2019: 31).

No employee earned in excess of £60,000 during the year including pension contributions (2019: none). The cost of Key Management Personnel is £138,676 (inc. Employer National Insurance and pension) for three employees (2019: £139,990 for three employees). Key Management Salaries and a salary scheme are set by a Remuneration Committee in consultation with the Chief Executive (and Finance and Audit Committee as part of the annual budgeting process).

Build It International directly delivers its charitable programme of work and training in Zambia. We utilise the skills of highly qualified staff to deliver quality training with high standards to our trainees to give them the best grounding for their future. When compared with similar organisations staff numbers in Zambia are higher than other organisations which outsource their work.

Holiday Pay outstanding at the end of the year was £4,545 (2019: £12,291).

Whilst modest in quantity Build It International greatly values the expertise and voluntary time given by a number of individuals during 2020 and prior periods.

6. TRUSTEE REIMBURSED EXPENSES

A total of £383 (2019: £3,113) was incurred related to the expenses of five trustees. The reduction in costs was wholly due to meetings held on line due to COVID 19.

23

BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

7. TRUSTEE DONATIONS, TRUSTEE REMUNERATION AND RELATED PARTIES

A total of £22,725 was donated by Trustees and Related Parties (2019: £20,618). No trustees received remuneration with regard to being a Trustee in the year 2020 (2019: £Nil).

Other than those with BII Zambia below, there were no related party transactions in the year (2019: none).

The majority of expenditure is in Zambia through our subsidiary, BII Zambia Limited (a company limited by guarantee).

Cash transfers from UK to Zambia
Non-cash transfers from UK to Zambia
Non-cash transfers from Zambia to UK		 2020
£
500,000
42,812
(799)
542,013

Total net Transfers to Zambia were £542,013 (ZMW 10.6M) of which ZMW 8.9M was for revenue projects and ZMW 1.7M for Centre for Excellence building projects and capital items.

Other than as stated above there were no other related party transactions in the current or previous accounting period.

24

BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

8. ALLOCATION OF EXPENDITURE

The Charity allocates support costs having analysed the principal areas of cost, attributing to each area the proportion of time or resources expended between Cost of generating funds and Charitable activities.

The Charity has allocated its UK support costs as shown below:

2020
Costs of generating funds
Charitable activities		 Direct
costs
£
Support
costs
(including
salaries)
£
146,945
57,481
30%
614,585
134,122
70%
761,530
191,603		 Total
2020
£
2020
204,426
21.4%
748,707
78.6%
953,133

The above 2020 expenditure and percentages do not include £85,847 (2019: £99,611) of capital expenditure on the Centre for Excellence. When this is added Charitable Activities are 79.5% (2019: 80.0%) of expenditure including the Centre for Excellence.

2019
Costs of generating funds
Charitable activities		 Direct
costs
£
Support
costs
(including
salaries)
£
179,399
78,037
35%
788,107
144,926
65%
967,506
222,963		 Total
2019
£
2019
257,436
21.6%
933,033
78.4%
1,190,469

The above 2019 expenditure and percentages do not include £99,611 of capital expenditure on Centre for Excellence. When this is added Charitable Activities are 80.0% of expenditure including Centre for Excellence.

ANALYSIS OF SUPPORT COSTS

UK Staff and Contractors (excluding Fundraising)
UK Support costs (Including UK office, insurances and IT)
UK Audit Fees
Costs relating to the governance of the Charity
Total Support Costs		 2020
2019
£
£
114,306
128,838
62,607
73,333
13,200
7,800
1,490
12,992
191,603
222,963

25

BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

9. GROUP FINANCIAL STATEMENTS

The Financial statements consolidate the results of BII and its subsidiary, BII Zambia Limited. A separate Statement of Financial Activities and Statement of Cash Flows is not presented for the UK Charitable Company because the charity has taken advantage of the exemptions in S408 of the Companies Act 2006.

10 a). FIXED ASSETS - GROUP

Costs at 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation at 1January 2020
Depreciation charge for year
Disposals
At 31 December 2020
Net book value at 31
December 2020
Net book value at 31
December 2019		 Group Land &
buildings
Group Office
equipment
Group Motor
Vehicles
Group Total
£
£
£
£
458,171
24,113
130,230
612,514
85,848
-
-
85,848
-
-
(16,223)
(16,223)
544,019
24,113
114,007
682,139
28,018
19,328
90,600
137,946
17,427
1,683
15,177
34,287
-
-
(14,195)
(14,195)
45,445
21,011
91,582
158,038
498,574
3,102
22,425
524,101
430,153
4,785
39,630
474,568

Land is long leasehold land for the Centre for Excellence project in Zambia.

Building will be depreciated over the expected useful life, and will begin in the year in which they are brought into use. Buildings are all at the Centre for Excellence and as at 31 December 2020 are in use other than the Office building which is expected to be completed and put into use in 2021.

At 31 December 2020 there are capital commitments relating to the Centre for Excellence of £nil (2019: £nil).

26

BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

10 b). FIXED ASSETS CHARITABLE COMPANY
Office
Equipment
£
Costs at 1 January 2020 3,545
Additions -
At 31 December 2020 3,545
Depreciation at 1 January 2020 866
Depreciation charge for the year 902
At 31 December 2020 1,768
Net book value at 31 December 2020 1,777
Net book value at 31 December 2019 2,659
11. DEBTORS
Group BII UK Group BII UK
2020 2020 2019 2019
£ £ £ £
Gift Aid 9,360 9,360 4,916 4,916
Sundry Debtors and Prepayments 33,574 25,153 60,367 47,807
Total 42,934 34,513 65,283 52,723
12. CREDITORS(Amount falling due within one year)
Group BII UK Group BII UK
2020 2020 2019 2019 (as
restated)
£ £ £ £
Accrued charges UK audit 13,200 13,200 7,800 7,800
Sundry accruals 42,398 12,619 65,439 27,096
Deferred income 81,447 - 43,133 -
Total 137,045 25,819 116,372 34,896
Analysis of movements in deferred income (Group)
Balance at 1 January 2020 43,133
Released in the year (43,133)
Income deferred 81,447
Balance at 31 December 2020 81,477

The above all relates to Irish Aid income. £81,477 has been deferred at the year end as the trustees do not consider the income recognition criteria under FRS 102 to have been met at this date.

27

BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

13. COMMITMENTS UNDER OPERATING LEASES

At 31st December 2020 the charity had commitments of £16,427 (2019: £28,212) related to non-cancellable operating leases . This concerns a lease on Shrewsbury office premises entered into by BII UK. Of this £11,992 (2019: £11,674) relates to a period of less than one year and £4,435 (2019: £16,538) relates to a period of one to five years.

28

Cumulative Capital Purchases £ 498,573 - - - - - - - - 498,573
Balance 31.12.2020 £ 616,413 8,423 40,722 19,263 48,910 28,872 50,958 38,193 - 851,754
Transfers from Unrestricted £ 194,500 - - - - - - 10,000 104,487 308,987
Transfers from Restricted £ - - - - - (30,513) - 30,513 - -
Expenditure £ (300,577) (18,906) (15,675) (86,445) (16,480) (65,937) (19,042) (43,337) (113,244) (679,643)
Income £ 170,120 - 17,079 81,400 70,895 26,669 70,000 41,017 8,757 485,937
Balance 1.1.2020 £ 552,370 27,329 39,318 24,308 (5,505) 98,653 - - - 736,473
14.
ANALYSIS OF RESTRICTED FUNDS		 Training to Work Training to Work including Centre for Excellence Community Building with Training and Support Activities Mukuyo Community School (2019) Naluyanda Community School (2019) Light of Hope Community School (2020) Libuyu Maternity Unit (2020/2021) Other Community Projects (Zambia) Other Projects Advocacy Safe Hands programme Programme Support & Development Costs Total
Cumulative Capital Purchases £ 430,153 - - - - - - - 430,153
Balance 31.12.2019 £ 552,370 10,398 27,329 70,189 24,308 (5,505) 57,384 - 736,473
Transfers from Unrestricted £ - - - - - - - 125,658 125,658
Transfers from Restricted £ - - - - - - - - -
Expenditure £ 369,522 41,974 133,655 123,464 3,407 5,505 93,358 127,673 898,558
Income £ 432,717 49,291 160,984 162,782 27,715 - 125,026 2,015 960,530
Balance 1.1.2019 £ 489,175 3,081 - - - - 56,587 - 543,843
14.
ANALYSIS OF RESTRICTED FUNDS GROUP (continued)		 Training to Work Training to Work including Centre for Excellence Community Building with Training and Support Activities Kamila Community School (2018) Mukuyo Community School (2019) Naluyanda Community School (2019) Light of Hope Community School (2020) Libuyu Maternity Unit (2020/2021) Other Community Projects (Zambia) Other Projects Programme Support & Development Costs Total

BUILD IT INTERNATIONAL

YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

15. ANALYSIS OF RESTRICTED FUNDS PARENT COMPANY

Movement in funds parent charity

Restricted funds
Unrestricted funds
Total
Restricted funds
Unrestricted funds
Total		 Balance
Transfers
from
Balance
1.1.2020
Income
Expenditure
unrestricted
31.12.20
£
£
£
£
316,667
315,776
(617,503)
308,987
323,927
486,824
654,921
(273,470)
(308,987)
559,288
803,491
970,697
(890,973)
-
883,215
Balance
Transfers
from
Balance
1.1.2019
Income
Expenditure
unrestricted
31.12.19
£
£
£
£
167,621
867,681
(844,293)
125,658
316,667
485,921
418,472
(291,911)
(125,658)
486,824
653,542
1,286,153
(1,136,204)
-
803,491

Note on restricted funds

Individual projects are extensively monitored by management and on a regular basis by the trustees at their quarterly meetings. An analysis in these accounts of those projects and the restricted funds attributable to them has been provided at the consolidated group level (see above and below) but not at the UK charity level. It has been decided by the trustees that given the current difficult pandemic conditions, the effort needed this year to provide such UK-only analysis (together with the prior year comparatives), was disproportionately large compared to the benefit that would be derived from such analysis by the readers of these accounts.

32

BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

16.
ANALYSIS OF FUNDS
Group
Fixed Assets
Current Assets
Current Liabilities
Total
Group
Fixed Assets
Current Assets
Current Liabilities
Total		 2020
Unrestricted
Restricted
Total
Fund
Fund
Funds
£
£
£
25,528
498,573
524,101
559,580
464,405
1,023,985
(25,820)
(111,224)
(137,044)
559,288
851,754
1,411,042
2019
Unrestricted
Restricted
Total
Fund
Fund
Funds
£
£
£
44,415
430,153
474,568
477,305
387,796
865,101
(34,896)
(81,476)
(116,372)
486,824
736,473
1,223,297

The Restricted Funds balance of £851,754 includes fixed assets expenditure £498,573 already incurred in constructing our Centre for Excellence of. Therefore, £353,182 of restricted funds remain available to spend on future activity.

17. TAXATION

Build it International is a registered charity and therefore, is not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

18. GRANTS

During 2020 the charity made two grants totalling £2,400 (2019: £10,605). One grant was made to support improved facilities at a community school where Build It has constructed school buildings, and is to facilitate greater improvements in community and educational attainment. The other small grant was to St Francis Hospital towards the construction of an oxygen tank facility in anticipation of their COVID-19 response.

All other projects are directly managed by Build It International.

33

BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

19 PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES

Notes
INCOME FROM:
Donations
3
Other Trading Activities
3
Investment income
interest receivable
Profit on sale of assets
Total
EXPENDITURE ON:
Raising funds
Charitable activities
programme
activities in Zambia
Total
8
NET INCOME/(EXPENDITURE) FOR THE
YEAR BEFORE TRANSFERS
4
Transfers between funds
14
NET MOVEMENTS IN FUNDS
4
RECONCILIATION OF FUNDS:
Total funds brought forward at 1
January 2019
Total funds carried forward at 31
December 2019
15		 Unrestricted
Restricted
2019
Funds
Income
Funds
Total
£
£
£
402,046
960,150
1,362,196
13,176
-
13,176
3,250
380
3,630
-
-
-
418,472
960,530
1,379,002
211,432
46,004
257,436
80,479
852,554
933,033
291,911
898,558
1,190,469
126,561
61,972
188,533
(125,658)
125,658
-
903
187,630
188,533
485,921
548,843
1,034,764
486,824
736,473
1,223,297

34

BUILD IT INTERNATIONAL TRUSTEES REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

20. DETAILS OF SUBSIDIARY UNDERTAKINGS

Build it International operates in Zambia through Bill Zambia Limited (a Company Limited by Guarantee), registered in Zambia as company number 120150137444.

Control is exercised through a Memorandum of Understanding between the two Boards. The BII Chair and CEO are both members of the Bill Zambia Ltd Board of Trustees. There is a single senior management team that includes both UK and Zambia staff members. Cash is transferred from the UK to Zambia on an

The aggregate amount of assets, liabilities and funds at 31 December 2020 for BII Zambia Limited was ZMW 10,387,607 (2019: ZMW 6,805,862). In the twelve months ending 31 December 2020 it had an income of ZMW 14,702,509 (2019: ZMW 11,039,173; expenditure of ZMW 12,413,372 (2019: ZMW 11,758,820); and a surplus of ZMW 2,289,137 (2019: deficit of ZMW deficit 719,647). Direct Income for BII Zambia Limited included grants from institutional donors, gifts in kind, local cash contributions to projects and bank deposit interest.

21. POST-BALANCE SHEET EVENTS

Since the year end, the COVID-19 pandemic has continued to impact Build It s activities in both Zambia, where in February the government temporarily closed schools and training courses for the second time during the pandemic (since reopened), and in the UK, where office staff are still mostly working from home. Problems arising from the pandemic appear to be alleviating, both in the UK as a result of lockdown and the vaccination programme; and in Zambia, where the virus appears not to have taken hold to quite the extent originally expected, even with the spread from South Africa of a more infectious strain.

The numerous impacts on Build It are covered in . The pandemic is expected to continue to put both income and expenditure under pressure during 2021. However, the Trustees are confident that the charity is taking sufficient action to conserve resources, that it will continue as a going concern and that it will be ready to resume full operations once conditions permit.

22. RESTATEMENT OF PRIOR YEAR FIGURES

The accounts have been restated to correct the impact of an accounting error in presenting the parent for the year ended 31 December 2019 of £40,133, and a reduction of the 31 December 2019 of the same amount. There was no impact on the group balance sheet at 31 December 2019 or the result presented in the Consolidated Statement of Financial Activities for the year ended 31 December 2019.

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