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