FRIENDS FOR DEVELOPMENT
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Recruitment and appointment of trustees
The Charity’s Trustees are also Directors for the purposes of Company Law. The Board has the power to appoint additional trustees as it considers fit to do so.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
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settle the terms of payment with suppliers when agreeing the terms of each transaction;
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ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and · pay in accordance with the company's contractual and other legal obligations.
Funds held as custodian trustee
There are no funds held as custodian trustee on behalf of others.
The trustees' report was approved by the Board of Trustees.
T South M Jessani Trustee Trustee
20 June 2024
FRIENDS FOR DEVELOPMENT
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FRIENDS FOR DEVELOPMENT
I report to the trustees on my examination of the financial statements of Friends for Development (the charity) for the year ended 31 December 2023.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Sadikali Gulamabas Premji (FCCA) Primera Accountants Limited
First Floor Spitalfields House Stirling Way Borehamwood WD6 2FX
Dated: 20 June 2024
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
Unrestricted Unrestricted funds funds
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FRIENDS FOR DEVELOPMENT
| 27,303 | |||
|---|---|---|---|
| 9,803 | |||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | 18 | 5 |
| Investments | 4 | 27,285 | ~~23,605~~ |
| Total income23,610 | |||
| Charitable activities | 516,321 | ||
| Net income and movement in funds | 17,500 | 7,289 | |
| Reconciliation of funds: | |||
| Fund balances at 1 January 2023 | 878,414 | 871,125 | |
| Fund balances at 31 December 2023 | 895,914 | 878,414 |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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FRIENDS FOR DEVELOPMENT
BALANCE SHEET
AS AT 31 DECEMBER 2023
| Fixed assets Notes Investment property Current assets 11 Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities The funds of the charity Unrestricted funds - general Revaluation reserve |
2023 £ 2,139 99,533 101,672 5,758 |
£ 800,000 95,914 895,914 347,550 548,364 895,914 |
2022 £ 69 87,316 87,385 8,971 |
£ 800,000 78,414 |
|---|---|---|---|---|
| 878,414 | ||||
| 330,050 548,364 |
||||
| 878,414 |
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the trustees on 20 June 2024
T South S Jessani Trustee Trustee
Company registration number 06458819 (England and Wales)
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FRIENDS FOR DEVELOPMENT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
Charity information
Friends for Development is a private company limited by guarantee incorporated in England and Wales. The registered office is C/O MCAK & CO, No 15 First Floor Princeton Mews, 167-169 London Road, Kingston Upon Thames, Surrey, KT2 6PT.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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FRIENDS FOR DEVELOPMENT
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
(Continued)
1.5 Expenditure
Expenses are accounted for on an accruals basis.
Direct charitable expenditure includes all expenditure incurred in relation to funding receivable in pursuance of the charity’s objectives.
Other costs incurred in support of these activities are separately analysed and shown as management and administration costs.
1.6 Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
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.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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.
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FRIENDS FOR DEVELOPMENT
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
(Continued)
1.9 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Income from donations and legacies
| Unrestricted Unrestricted | funds | |
|---|---|---|
| funds | ||
| 2023 | 2022 | |
| £ | £ | |
| Donations and gifts | 18 | 5 |
4 Income from investments
| Unrestricted Unrestricted funds | Unrestricted Unrestricted funds | ||
|---|---|---|---|
| funds | |||
| 2023 | 2022 | ||
| £ | £ | ||
| Rental income | 25,635 | 23,475 | |
| Interest receivable | 1,650 | 130 | |
| 27,285 | 23,605 | ||
| 5 | Expenditure on charitable activities | ||
| Charitable | Charitable | ||
| expenditure | expenditure | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Direct costs |
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FRIENDS FOR DEVELOPMENT
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
| Grant funding of activities (see note 6) | 5,163 | 10,794 | |
|---|---|---|---|
| Share of support and governance costs (see note 7) | |||
| Support | 4,040 | 4,927 | |
| Governance | 600 | ~~600~~ | |
| 16,321 | |||
| 9,803 | |||
| Analysis by fund | |||
| Unrestricted funds | 9,803 | 16,321 | |
| 6 | Grants payable | ||
| Charitable | Charitable | ||
| expenditure | expenditure | ||
| 2023 | 2023 | ||
| £ | £ | ||
| Grants to institutions: | |||
| Grants to other charities | 5,163 | 10,794 | |
| - | |||
| 7 | Support costs allocated to activities | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Repairs and maintenance | 1,277 | 1,256 | |
| Service charges | 1,317 | 1,390 | |
| Insurance | 756 | 628 | |
| Agents fees | 690 | 1,653 | |
| Governance costs | 600 | 600 | |
| 4,640 | 5,527 | ||
| Analysed between: | |||
| Charitable expenditure | 4,640 | 5,527 |
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FRIENDS FOR DEVELOPMENT
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
9 Employees
The average monthly number of employees during the year was:
| 2023 | 2022 | |
|---|---|---|
| Number | Number | |
| Total | - | - |
There were no employees whose annual remuneration was more than £60,000.
Remuneration of key management personnel
No remuneration has been made to key management personnel during the year or in the previous year.
10 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
11 Investment property 2023 £
| Investment property 2023 £ | |
|---|---|
| Fair value | |
| At 1 January 2023 and 31 December 2023 | 800,000 |
The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 December 2023 by the Trustees. The valuation was made on an open market value basis by reference to rental yields and market conditions.
12 Debtors
| Amounts falling due within one year: Prepayments and accrued income 13 Creditors: amounts falling due within one year Other creditors |
2023 £ 2,139 2023 £ 2,763 |
2022 £ 69 |
|---|---|---|
| 2022 £ 2,221 |
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FRIENDS FOR DEVELOPMENT
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
| Accruals and deferred income | 2,995 | 6,750 |
|---|---|---|
| 5,758 | 8,971 |
14 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At 1 | Incoming | Resources | At 31 | |
|---|---|---|---|---|
| January | resources | expended | December | |
| 2023 | 2023 | |||
| £ | £ | £ | £ | |
| General funds | 878,414 | 27,303 | (9,803) | 895,914 |
| Previous year: | At 1 | Incoming | Resources | At 31 |
| January | resources | expended | December | |
| 2022 | 2022 | |||
| £ | £ | £ | £ | |
| General funds | 871,125 | 23,610 | (16,321) | 878,414 |
15 Related party transactions
There were no disclosable related party transactions during the year (2022 - none).
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