Charity regislr8tion number.. 1118470 Africa Research Institute Annual Report and Financial Statements for the Year Ended 31 March 2026
Africa Research Institute Contents (continued) Refence and Adminislralive Details Trustees, Report 2to3 Statement of Trustees. Responsibili(ies Independent Examinerfs Report Balance Sheet Notes lo the Financial Slalements 81014
Africa Research Institute Reference and Administrative Details Trust99$ MrRELSmilh Miss S F Smith Charity Registratlon Number 1118470 Principal Office Street Court Kingsland Leominster Herefordshire HR6 9QA Independent Examiner Hszlewoods LLP Slaverton Court Slaverton CheenhaM GL51 OUX Solicitors Harrison Clark Rickerbys LLP Ellenborough House Wellington Street Cheltenham Gloucestershire GL50 1YD Bankers Lloyds TSB Bank PIC 38 Blue B08r Row wIshIre SP1 1DB Page 1
Africa Research Institute Trustees, Report The Iruslees present the annual report together with the financial slalemenls ol the charity for the year ended 31 March 2026. The financial slalemenls h8ve been prepared in accordance with the aountIng policies sel out in note 110 the financial slalemenls and comply with the charity's governing document, the Charities Act 2011 and Acwunting and Reporting by Charities.. Slalemenl of Recommended Practice 8pplieable lo charities preparing their accounts in accordance wlh the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 Objectives and activities Objects and aims The objects of the charity are lo advance the education of the general public in the UK. Africa and elsevihere in the subjects of good governan, health, gender issues, trade, rural development, international aid, human welfare 8nd poverty relief relating to countries and societies in Africa and lo educate the public about Africa generally and the challenges il faces.. and lo promote research into the above subject areas for the benefit of the public and lo disseminate the useful results of such research. Objectives. strategies and activities The objectives of the charity are lo encourage debate, question orthodoxy and ch8llenge "received wisdom in and about Africa. The charity seeks to Promote an informed. nuanced and representative understanding of the continent. The work of the charity draws attention to good practice and innovation. while also idenlfying where new approaches might be needed. Examples of practical achievement are of particular Interest to us. The charity's research is distributed widely within Africa and elsewhere to decision-makers, institutions and individuals with a keen interest in the conlinenl's future. The charity also holds gUlar inleraclive events with expert speakers in London and Africa. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake. Achievements and performance There have been no significant changes in the manner in which the charity ¢onducls research and disseminates its findings. Its archive continues lo act as a valuable educational resource and a new website was designed and launched lo showcase the archive. Plans are well advanced for new publications. An executive director oversees attainment of the charity's unchanged aims and objectives. Financial revigw Al the balance sheet dale, "free reserves" being unrestricted funds other than fixed assets, amounted lo £130.031 12025.. £118,202) Policy on reserves The charity aims lo relain free reserves sufficient lo provide adequate working capital lo fund ils charitable aclivilies. Ca8h reserves al the year end (including amounts held on short term deposi(} were £131,771 12025.. £122.2691. Page 2
Africa Research Institute Trustees, Report Icontinuedl Risk The Iruslees have assessed the major risks lo which the charity 1$ exposed, and are satisfied that systems are in place to mitigate exposure lo the major risks Tru$toes and offlcers The Iruslees and officers serving during the year and since the year end were as follows.. Trustees.. MrRELSmilh Miss S F Smith Structure* governance and management Nafure ofgoverning document The charity is governed by ils Trust Deed dated 1 November 2006. It is independently funded and strictly non- partisan. Recruitment and appoiTntment of trustees The power of appointing new trustees is vested in the trustees. Organisational structure The trustees are responsible for formulating the strategies and policies of the charity including the exercising of financial controls. Tk,. annual report was approved by the Iruslees of the charity on behalf by.. 13 J¥&JglG and signed on ils Mr Trus Page 3
Africa Research Institute Statement of Trustees, Responsibilities The Iruslees are responsible for preparin9 the trustees, report and the financial statements in accordance with the United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of thè slate of affairs of the charity and of the incoming resources and application of resources ol the charity for that period. In preparing these financial slalemenls, the Iruslees are required lo.. sulect suitable accounting policies and then apply them consislenlly., observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., slate whether applicable accounting standards have been followed, subject lo any material departures disclosed and explained in the financial slalemenls". and prepare the financial slalemenls on the going concern basis Ljnless it is inappropriate lo pSurne that the charity will continue in business. The trustees 8re responsible for keeping proper accounting records that disclose with reasonable accuracy at any lime the financial posiiion of the charity and enable them lo ensure that the financi81 slalemenls comply wrf(h the Charities Act 2011. the Charities IAc¢ounls and Reports) Regulations 2008, anol the provisions of the conslilulion. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud ano other irregularities. The Iruslees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial slalements may differ from legislation In olher jurisdictions. Approved by the Iruslees of the charity on 23 toz6 and signed on ils behalf by.. MrRE Trust Page 4
Africa Research Institute Independent Examiner's Report to the trustees of Africa Research Institute I report lo the Iruslees on my examination of the accounts of Africa Research Institute for the year ended 31 March 2026. Responsibilities and basis of report As the charity trustees of Africa Research Inslilule you are responsible for the preparation of the accoLJnts in accordance with the requirements of the Charities Act 2011 I'lhe Act'i. I report in respect of my examination of the Afric8 Research Inslilule's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 14515llbl of the Act. Independent examinèr's statement I have completed my examination. I confirm that no material matters have come lo my attention in connection with the examination giving me cause lo believe that in any material respect". 1. accounting records were not kept in respect of Afric8 Research Inslilule as required by section 130 of the Act.. or 2. the accounts do not accord with those records,. or 3. Ilie accounts do not comply with the accounting requirements concerning the form and content of accounts sel out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'lrue and fair view, which Is not a matter considered as part of an independent examination. I h¥ve no concerns and have come across no other matters in connection with the examination lo which attention should be drawn in this report in order lo enable a proper unolerslanding of the accoLJniS lo be reached. Felicity Sang FCA Slaverton Court Slaverton Chpllenham GL51 OUX Dale". 30 June 2026 Page 5
Africa Research Institute ststement of Financial Activities by fund for the Year Ended 31 March 2026 Unrestricted Unre$trlcted Funds Funds 2026 202S IncillP.e from.. Doralions and legacies Expenditui'e on.. Charitable activities 100,000 100,000 88,171 90,365 Nel income for the yearlnet movement in funds To4al funds brought fOard Total funds carried forward 11.829 9,635 118,202 108,567 130,031 118,202 The notes on pages 8 10 14 form an integral part of these financial slalements. Page 6
Africa Research Institute (Registration number.. 11184701 Balance Sheet as at 31 March 2026 2026 2025 Notè Current assets Cash al bank and in hand 131,771 122,269 Creditors: Amounts falling due within one year Net assets 11,7401 130.031 4,0871 118,202 Funds of the charity: Unrestricted income fund$ Unreslrictecl funds 130,031 118,202 Total funds 130,031 118,202 The financial statements on pages 6 10 14 were approved by the trustees, and aulhorised for issue on 13 and signed on their behalf by.. MrR The notes on pages 8 10 14 form an integral part of these financial slalements. Pa9e 7
Africa Research Institute
Notes to the Financial Statements for the Year Ended 31 March 2026
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance 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 (FRS 102)". The charity is a Public Benefit Entity as defined by FRS 102.
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.
Basis of preparation
The charity has taken advantage of the provisions in the SORP for smaller charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
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.
Page 8
Africa Research Institute
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
1 Accounting policies (continued)
Judgements
Critical accounting judgements and key sources of estimation uncertainty
The trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities based on their experience and professional advice received. Inevitably, the actual outcome may differ from predictions. Estimates and underlying assumptions are reviewed on an ongoing basis to ensure that they remain relevant.
Income and endowments
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.
Interest on funds held on deposit is included when receivable and 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 from the HR Smith Group of companies in the form of provision of office space but as the value of these resources cannot be quantified the income and expenditure has not been recognised in the statement of financial activities.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it 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 on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Irrecoverable VAT is charged against the category of resources expended for which it is incurred.
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include office costs, finance, personnel, payroll and governance costs which support the charity's programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in the notes to the financial statements.
Grants are recognised in full in the year in which they are approved with future payments being included as liabilities. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure
Taxation
The charity is exempt from corporation tax on income 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 to the charitable objects.
Page 9
Africa Research Institute
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
1 Accounting policies (continued)
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.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Financial instruments
Classification
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
Recognition and measurement
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Derecognition 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 but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Debt instruments
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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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 initially at 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 contractual obligations expire or are discharged or cancelled.
Page 10
Africa Research Institute
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
1 Accounting policies (continued)
Employee benefits
The costs of short-term 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 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.
Provisions
Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to 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 required to settle the present obligation at the reporting end date, taking 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 to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.
2 Income from donations and legacies
| Donations from companies, trusts and similar proceeds 3 Expenditure on charitable activities Note Staff costs Allocated support costs 4 Governance costs 4 |
Unrestricted funds 2026 £ 100,000 Direct costs 2026 £ 80,879 5,262 2,030 88,171 |
Unrestricted funds 2025 £ 100,000 |
|---|---|---|
| Direct costs 2025 £ 84,913 3,462 1,990 |
||
| 90,365 |
Page 11
Africa Research Institute
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
4 Analysis of governance and support costs
| Support costs £ Governance costs £ Rates 1,215 - Insurance 564 - Other support costs 765 - Accountancy - 1,380 Independent Examiners fee - 650 Bank charges 150 - Computer, software and maintenance costs 2,568 - Analysed between Charitable activities 5,262 2,030 |
2026 £ 1,215 564 765 1,380 650 150 2,568 7,292 |
2025 £ 1,480 542 1,249 1,340 650 191 - |
|---|---|---|
| 5,452 |
Governance costs
| Independent examiner fees Examination of the financial statements Other fees paid to examiners |
Unrestricted funds General £ 650 1,380 2,030 |
Total 2026 £ 650 1,380 2,030 |
Total 2025 £ 650 1,340 1,990 |
|---|---|---|---|
5 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year (2025: Nil).
6 Staff costs
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
| Research | 2026 No 1 |
2025 No 1 |
|---|---|---|
Page 12
Africa Research Institute
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
6 Staff costs (continued)
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries Social security costs |
2026 £ 80,113 766 80,879 |
2025 £ 80,113 4,800 |
|---|---|---|
| 84,913 |
The number of employees whose emoluments fell within the following bands was:
| £80,001 - £90,000 7 Creditors: amounts falling due within one year Other creditors Accruals 8 Funds Balance at 1 April 2025 £ Incoming resources £ Unrestricted funds General 118,202 100,000 Balance at 1 April 2024 £ Incoming resources £ Unrestricted funds General 108,567 100,000 |
2026 No 1 2026 £ - 1,740 1,740 Resources expended £ (88,171) Resources expended £ (90,365) |
2025 No 1 |
|---|---|---|
| 2025 £ 2,617 1,450 |
||
| 4,067 | ||
| Balance at 31 March 2026 £ 130,031 |
||
| Balance at 31 March 2025 £ 118,202 |
Page 13
Africa Research Institute
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
9 Related party transactions
| 9 Related party transactions |
|||
|---|---|---|---|
| Donations 2026 £ HR Smith Technical Developments Limited - HR Smith Group Limited 100,000 100,000 |
Donations 2025 £ - 100,000 100,000 |
Recharges 2026 £ 229 - 229 |
Recharges 2025 £ 199 - |
| 199 |
Mr R E L Smith and Miss S F Smith are Trustees of the charity and also directors of HR Smith Group Limited and HR Smith (Technical Developments) Limited. The charity received donations without conditions and was recharged life insurance related costs as detailed above.
Page 14