Charity Regi8tratlon No. 1118470 AFRICA RESEARCH INSTITUTE ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
AFRICA RESEARCH INSTITUTE LEGAL AND ADMINISTRATIVE INFORMATION Trustees MrRELSmilh Miss S F Smith Lord Flight of Worcester Charlty number 1118470 Princlpal address Stre81 Court Kingsland Leominster Herefordshire United Kingdom HR6 9SG Independent examlner Katherine Parkin FCA A2els Audit Services Pillar House 113-115 Bath Road Cheltenham Gloucestershire United Kingdom GL53 7LS Bankers Lloyds TSB Bank PIC 49-51 Dean Street Marlow Buckinghamshire United Kingdom SL7 3BP Solicitors Harrison Clark Rickerbys LLP clo Harrison Clark Rickerbys Limited Ellenborough House Wellington Street Chellenham Gloucestershire United Kingdom GL50 1YD
AFRICA RESEARCH INSTITUTE CONTENTS Page Trustees, report Independent examiner's report ststement of financial activities Balance sheet Notes to the financial 51alemenls 6-12
AFRICA RESEARCH INSTITUTE TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2021 The Iruslees present their report and financial ststemenls for the year ended 31 March 2021. The financial slalemenls have been prepared in accordance with the accounting policies sel out in note I to the financial 51alemenls and comply with the charity's governing document, the Charities Act 2011 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 IFRS 1021 (effective 1 January 20191" Objectives and activitles The objects of the charity are lo advance the education of the general public in the UK, Africa elsewhere in the subjects of good governance, health, gender issues, trade, rural development, international aid, human welfare and poverty relief relating lo countries and societies in Africa and lo educate the public about Africa generally and the challenges it fa$.. and lo promote research into the above subject areas for the benefit of the public and to disseminate the useful results of such research. ivities The objectives of the charity are lo encourage debate, question orthodoxy and challenge "received wisdom" in and about Africa. The charity seeks to promote an informed, nuanced and representstsve understanding of the continent. The work of the charity draws allenlion lo good Practi and innovation, while also identifying where new approaches might be needed. Examples of Pfathcal achievement are of particular interest lo us. The charity's research is distributed widely within AfrKa and elsewhere lo decision-makers, institutions and individuals with a keen interest in the conlinenl's future. The charity also holds regular interactive events with expert speakers in London and Africa. The trustees have paid due regard lo guidance issued by the Chanty Commission in deciding what aetivilies the charity should undertake. Achigvoments and performance There have been no significant developments or changes to the activities of the charity during the last year however an employed director was appointed in the prior year to further progress ils aims and objectives. Financlal review in osition Al the balance sheet dale, "free reserves" being unrestricted funds other than fixed assets. amounted lo £89,C)2412020.' £3,0651 The charity aims lo retain free reserves sufficient lo provide adequate working capital to fund ils charitable activities. Cash SeThe$ at the year end (including amounts herd on short tem deposill were £93,374 (2020.. £8,351). vi Following the start of the Covid-19 pandemic in March 2020, all travel lo Africa has been postponed indefinitely, however work continues In the UK lo further the objects of the charity. The trustees have assessed the major risks to which Ihe ¢harity is exposed, and are satisfied that systems are in place lo mitigate exposure lo the major risks.
AFRICA RESEARCH INSTITUTE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Structure* governance and mana9emgnt vernin docum The charity is governed by ils Trust Deed dated 21 March 2007. 11 is independentty funded and strictly non- partisan. The trustees who served during the year and up to the dale of signature of the financial statements were.. MrRELSmith Miss S F Smith Lord Flighl of Vvorcester Re ruilmenl nd f trustees The power of appointing new Iruslees is vested in the trustees. anisalional st The truslees are responsible for formulating the strategies and policies of the charity irlUding the exercising of financial controls. The trustees, report was approved by the Board of Trustees. MrRELSmith Trustee Dated. 22liolL021
AFRICA RESEARCH INSTITUTE INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF AFRICA RESEARCH INSTITUTE I report lo the trustees on my examination of the financial statements of Africa Research Institute {Ihe charity) for the year ended 31 March 2021. Responsibilities and basls of report As the trustees of the charity you are responsible for the preparation of the financial slalemenls in accordance with the requirements of the Charities Act 2011 Ilhe 2011 Acti. I report in respect of my examination of the charity's financial stslements carried out under section 145 01 the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 14515llbl of the 2011 Act. Independent examine$ statement I have completed my examination. l confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect.. accounting records were not kept in respecl of the chaiily as required by section 130 of the 2011 Act., or the financial statements do not accord with those records,. or the financial statements do not comply with the applicable requirements concerning the fonn and conlenl of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any Tequiremenl that the accounts give a true and fair view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to whrh attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. Katherine Parkin FCA 2els Audit SeNices Pillar House 113-115 Bath Road Chellenham Gloucestershire GL53 7LS United Kingdom
AFRICA RESEARCH INSTITUTE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITUREACCOUNT FOR THE YEAR ENDED 31 MARCH 2021 Unrestricted Unrestricted funds funds 2021 2020 Notes endowm Donations and legacies Investment income Other income nt 180.000 37 60,000 183 1,025 Total Income 180,037 61,208 Charitable activities 94.078 95,210 Net In¢omg1{expenditurel for tho yearl Net movement in funds 8S,9S9 134,0021 Fund balances at 1 April 2020 3,065 37,067 Fund balances at 31 March 2021 89,024 3,065 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from conlinuino activities
AFRICA RESEARCH INSTITUTE BALANCE SHEET ASAT31 MARCH 2021 2021 2020 Not•s Current assets Debtors Cash at bank and in hand 56 93,374 8,351 93,430 8,351 Crgditovs: arnount$ falling due within on• year 10 14,4061 15,2861 Net current assets 89,024 3,065 In¢¢mg funds Unrestricted funds 89.024 3,OSS 89,024 3,085 The financial slalemenls were approved by Ihe Trustees orl ..111.ia.l.ioii MrRELS Trust*•
AFRICA RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Accountlng policios Charity Information Africa Research Institute is an unincorporated charity and is registered with the Charity Commission under number 1118470. The address of the principal office can be found on the legal and administrative information page. 1.1 Accountlng convention The financial statements have been prepared in aceordance with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable lo eharilies pparIng their accounts in accordance with the Finanei81 Reporting Standard applicable in the UK and Republic of Ireland IFRS 102} leffeclive 1 January 2019}" The charity is a Publi Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions In the SORP for smaller charities not to prepare a Statement of Cash Flows. The financial slalements have departed from the Charities {Accounls and Reports) Regulab"ons 2008 only to the extent required to provide a true and fair view. This departure has involved following the Slalemenl ol Recommended Practice for charities applying FRS 102 rather than the version of the Ststement of Recommended Practice which is referred lo in the Regulations bul which has since been withdrawn. The financial slalemenls are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rovnded lo the nearest £. The financial statements have been prepared under the historical cost convention, modified lo include the revaluation of freehold properties and lo include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are sel out below. 1.2 Going Concem Al the time of approving the financial st8tements, the Iruslees have a reasonable expectation that the charity has adequate resources lo continue in operational existence for the foreseeable future. Thus the Iruslees continue lo adopt the going conrn basis of accounting in preparing the financial statements. 1.3 Charitable funds Unrestricted funds are available for use at the discrebon of the Iruslees in furtherance of their charitable objectives. Restricted funds are subject lo specific conditions by donors as to how they may L)e used. The purposes and uses of the restricted funds are set out in the notes to the financial slalemenls. 1.4 Income Income is recognised when the charity is legally entitled lo rt after any performance conditions have been mel, the amounts can be measured reliably, and il is probable that income will be received. Cash donalions are recognised on receipt. Other donations are COgnised once the charity has been notified of the donation, unless performance condrtions require deferral of the amount. Income lax recoverable in relation lo donations received under Gift Aitj or deeds of covenant is recognised al the lime of the donation. Legacies are recognised on CeIpt or otherwise if the charity has been notified of an impending dislribulion. the amount is known, and receipt is expected. If the afnounl is not kni)wn, the legacy is treated as a contingent asset.
AFRICA RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Accounting pollcles (Continued) Interest on funds held on deposit is included when receivable & the amount can be measured reliably by the charity.. this is normally upon notification of the interest paid or payable by the bank. The charity receives donated resources Irom the HR Smith Group of companies in the fomi of provision of office space bul as the value of these resources cannot be quantrfied the income and expenditure has not been recognised in the slalement of financial aclivilies. 1.5 Expendlture Liabilities are recognised as expenditure as soon as there is a legal or conslruclive oblig31ion committing the charity lo that expenditure, Il is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for (m an accruals basis and has been classified under headings that aggregate all cost related lo the category. Where costs eannol be directly attributed lo particular headings they have been allocated lo activities on basis consistent with the use of resources. Support costs are those functions that assist the work of the charity but do not diredly undertake charitable activities. Support costs include office costs, finance. personnel, payroll and governan costs which 5UPPOrt the charity's programmes and 8clivities. These costs have been allocated between cost of raising funds and expenditure on charitable aclivilies. The bases on which support costs have been allocated are sel out in the notes lo the financial slatemenls. Grants are recognised in full in the year in which they are approved with future paymen15 being included as liabilities. Grants offered subject lo conditions which have nol been met al the year end dale are noted as a commitment bul not accrued as expenditure. 1.6 Cash and cash equivalonts Cash and cash equivalents include cash in hand, deposits held al call with banks, other short-lerm liquid investments with original malurilies of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilitie5. 1.7 Financial instruments Financi81 instruments are recognised in the charity's balance sheet when the eharity becomes party lo the contractual provisions of the instrument. Financial assets and liabilities are offset, with the nel amounts presented in the financial ststements, when there is a legally enforceable right lo sel off the recognised amounts and there Is an intention lo settle on a net basis or lo realise the 8ssel and settle the liability simultaneously. Basic financlal assets Basic financial assets, wt)ich include debtors and cash and bank balances, are initially measured at transaction Pri including transaction Costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement conslilule5 8 financing transaction, Whe the transaction is measured al the present value of the future receipts discounted al a market rate of interest. Financial assets classified as re1Vable within one year are not amortised. Dergcognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained bul control of the asset has transferred lo another party that is able lo sell the asset in ils entirety lo an unrelated third party.
AFRICA RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Accounting poll¢ie$ Icontlnuod) Basic financial liabilitles Basic financial liabilities, including creditors and bank loans are initialty i8gnISed al transaction price unless the arrangement constitutes a financing transaction. where the debt instrument is measu¥ed al the present value of the future payments discounted at a mafket rale of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried al amortised cost, using the effective interest rale melhod. Trade creditors are oblig81ions lo 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-currenl liabilities. Trade creditors are recognised inslially al transaction price and subsequently measured at amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's conlraclual obligations expl or are discharged or cancelled. 1.8 Employee benefits The costs of short-lerm employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entillemenl is recognised in the period in which the employee's services are received. Temination benefits are recognised immediately as an expense when the charity is demonstrab Committed lo terminate the employment of an employee or lo provide termination benefits. 1.9 Taxatlon The charity is exempt from corporation lax on incorne and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied lo the charitable objects. 1.10 Provisions Provisions are recognised when the charity has a legal or constructive present obligation as a result of past event, il is probable that the charity will be reqijired lo settle that obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration [equid lo settle the present obligation al the reporting end dale, tsking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material. the amount expected to be required lo settle the obligation is recognised at present value. Vvhen a provision is measured al present value, the unwinding of the discount is recognised as a finance cost in nel incomellexpendilurel In the period in which (( arises.
AFRICA RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 MARCH 2021 Donatlons and logacles Unrestricted Unrestricted funds funds 2021 2020 Donations and gifts 180,000 60,000 Investment 5ncome Unre8trlcted Unrestricted funds funds 2021 2020 Investment income 37 183 Other Income Total Totsl 2021 2020 Royalties 1,025 Charitable activltl•8 Direct costs Direct costs 2021 2020 Staff costs Travel Consultancy 85.289 85,647 1,250 5(k8 85.289 87,403 Share of support costs (see note 61 Share of governan costs (see note 61 7,707 1.082 6,195 1,612 94,078 95,210
AFRICA RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Support costs Support Governance Costs costs 2021 Support Governance costs costs 2020 Bank charges Other support costs Rates 132 1,462 6.113 132 1,462 6,113 143 962 5.090 143 962 5,090 Independent Examiners fee Accountancy 540 542 540 542 540 1,072 540 1,072 7.707 1,082 8,789 6,195 1,612 7,807 Analysed betseen Charitable activitS 7,707 1,082 8,789 6,195 1,612 7,807 Governance costs include amounts payable to the independent examiner of £540 12020.. £5401 for Independent Examination and £542 12020.. £1,072) payable to the Independent Examiner for other accountancy services provided. Trustees None of the trustees Iof any persons connected with theml received any remuneration, benefits or reimbursed expenses from the charity during the year. Employeos The average monthly number of employees during the year wa$.. 2021 Numb$r 2020 Number Employment cost$ 2021 2020 Wages and salaries Soaal security costs 79,523 5,766 78,944 6,703 85,289 85,647 10-
AFRICA RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Employees (Contlnuedl The number of employees whose annual remuneration was £60,000 or more were". 2021 Numbor 2020 Number £70,000- £80,000 Debtors 2021 2020 Amounts falling due within one year: Prepayments and accrued income 56 10 Credltors.. amounts falling du• wlthln ong year 2021 2020 Trade ¢ditorS Other creditors Accruals 8nd deferred Income 540 2,762 1,104 1,410 2,774 1,102 4,406 5,286 11 Unr•stri¢tod funds These are unrestricted funds which are material to the charity's activities rnade up as follows.. Movement In fund$ In¢omlng Resource5 Balance ai expended l April 2020 Movement in fund$ Incomln9 Re$ources Balance at resources *xpgnded 31 March 2021 B8lance at 1 April 2019 Unrestricted funds 37,067 61,208 {95,210) 3,065 180,037 (94.0781 89,024
AFRICA RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 MARCH 2021 12 Related party transactions Transactions with related partles During the year the charity entered into the following transactions with related parties- Donatlons received 2021 2020 H R Smith GroLtp Limrted 180,000 60,000 180,000 60,000 Mr Richard Smith and Miss Susan Smith are Trustees of the charity and also directors and shareholders of H R Smith Group LirTlited. The charity received donations wilhoul conditions as detailed above. 12-
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