2022-03-31-accounts

MUSTARD SEED PROJECT (KENYA)

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS

FOR THE YEAR ENDING 31 MARCH 2022

New Miche Bora School

Registered Company Number: 6778042

Registered Charity Number: 1127935

MUSTARD SEED PROJECT (KENYA)

CONTENTS OF THE ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

	Page
Report of the Trustees	3
What Happened This Year	4
Donors and Supporters	6
Governance Structure and Management	7
Financial review	13
Independent Examiners Report	15
Profit and loss account	16
Balance Sheet	17
Notes to the Financial Statements	18

REPORT OF THE TRUSTEES FOR YEAR ENDING 31st MARCH 2022

The Trustees, who are also Directors of the charity for the purpose of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2020. The Mustard Seed Project (Kenya), trades as The Mustard Seed Project and is often referred to as MSP, although only the full name is in this report. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ issued in March 2005. Reference has also been made to Charity Commission publications

REFERENCE and ADMINISTRATIVE DETAILS

Registered Company Number 6778042 (England and Wales) Registered Charity Number 1127935 Registered Office 105 Thackers Way, Market Deeping Peterborough, PE6 8LY

Trustees at 31 March 2022

Rita Fowler Chair Lynne Smith Secretary Mark Tilley Treasurer Archana Gregory Julie Berry Nicola Jayne Hinton Charlotte Wade

Independent Examiner

Ivan Fuller 38 West Villas West Road Bourne Lincolnshire PE10 9PU

Banks

HSBC Stamford Branch

1 High Street, Stamford Lincolnshire. PE9 2AL Diamond Trust Bank Moi Avenue, Mombasa Kenya Commercial Bank Kisauni Branch, Mombasa

REPORT OF THE TRUSTEES FOR YEAR ENDING 31st MARCH 2022

What Happened This Year

The long lasting impact of Covid and rising food prices continued to dominate the lives of the Miche Bora School community this year. More and more families needed help with sourcing food and so many people have been forced to use their savings in order to survive. This meant far reaching implications for many families in terms of employment, income and the challenges of feeding themselves and their children. Miche Bora continued to provide a feeding programme during the year which was, in some cases, simply life saving.

Overseas travel remained restricted in 2021 so it still wasn’t possible for trustees to visit the school. However, some members of the community have received the Covid vaccination, perhaps indicating the pandemic was entering a different period. Any further outbreaks of Covid in Kenya resulted in local lockdowns which largely prevented the virus spreading further.

Within this context, the KCPE results were disappointing compared to previous years. The children who took the exam in March 2021 had lost half a year of school, clearly putting them at a disadvantage and a mean score of C+ was achieved. One boy, who in normal circumstances, would have been an A student gained a B+ and so lost the opportunity of sponsorship for further education. However, given the extremely challenging conditions over a prolonged period, the results reflect the hard work and dedication of the Miche Bora staff.

As the new school building was completed in December 2020, the school continued to adapt to the challenges of staggered opening times and maintaining high standards of hygiene. Covid had also impacted the term dates which meant children were in school for longer periods and therefore more funds were spent on the feeding programme.

The need for a playground was also on the agenda. Unfortunately, the land opposite the school is to be built on and other plots that are available are not as close. A small area behind the school which is used by a church on Sundays is used for the the youngest children.

In April 2021, one of the trustees attended an SIDC [Small International Development Charities] online course on teacher training. The problems faced by many other charities this year were acknowledged as: restricted fundraising, minimal travel and disruption to learning; Miche Bora School has certainly experienced these challenges too.

As in 2020, weekly WhatsApp video calls continued between the Headteacher, staff and UK trustees were maintained regularly throughout the year. Specialist nursery online training continued from Christine, a UK based reception teacher and Behaviour for Learning training was delivered for Upper School staff.

A dialogue commenced in August 2021 with Irene, the headteacher, about staff appraisal. Documents to record staff strengths and targets were developed collaboratively to be implemented across teaching staff at the beginning and end of the school year. This was followed up with lower school staff during the trustee visit in October 2022 and is an ongoing project that has the intention of developing and retaining staff as part of a long term strategy to improve teaching and learning.

On 21st December 2021 we sadly lost Geoff Fowler, one of the founders of the charity. This was a devastating loss not only for his family but also for the charity. Geoff’s work with the youth and the women meant that he was a hugely respected and loved person within the Mgongeni community and his loss has been felt deeply. Although Geoff was not able to see the finished school building in person, the legacy he leaves is a powerful one. Geoff’s funeral, held on 18th January 2022, was live streamed to Kenya and members of the community were invited to provide condolence messages which were read during the service.

Our Donors and supporters

The Mustard Seed Project appreciates our amazing donors, supporters and sponsors. The Big Give was our greatest fundraiser of the year and £17,562 was raised.

Jude Bellingham continues to be our most high profile supporter. His support for the charity has highlighted in articles in the Daily Mirror, The Sun, The i and The Mail and his international reputation means excellent publicity for the school and the work it does. This year his Facebook page was set up specifically to raise funds for the feeding programme.

As Virgin Money Giving ceased operating on 30th November 2021, regular donors were requested that they continue to support our project on Just Giving.

Plans for the Future

1. Raising funds for the feeding programme.

2. Ongoing improvement to the quality of the education through training and a staff appraisal process.

3. Expand our IT facilities and the training of staff and children.

4. Identifying and raising funds to pay for land for a playground.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document. The charity is controlled by its governing document, Memorandum and Articles of Association, and constitutes a company, limited by guarantee as defined by the Companies Act 2006 The liability of members in the event of the company being wound up is £1. The company is a registered charity.

Organisational Structure

The Mustard Seed Project (Kenya) is a limited company governed by its Board. New trustees are identified by existing members for having the knowledge, experience and skills to add value to the Board and to help to grow the organisation. There has been a policy of recruiting younger trustees who will take over control when the present leaders get too old. There is a strategy of sustainability. They are given a detailed induction and encouraged to visit the project when possible. Six out of the eight trustees have visited and worked on the project.

The chair is Rita Fowler , who is a joint founder, who was for many years a nurse/midwife before retraining to be a primary school teacher. She is responsible for the development of the school, recruiting staff, resources, staff training and monitoring progress. Rita also monitors finance; raises money, keeps the website up to date and liaises with volunteers and donors.

Lynne Smith (Secretary) is a retired primary teacher with a wealth of knowledge and experience of early years. This has been invaluable in supporting the setting up of the nursery and the development of the Key stage 1 teachers. She also advises on resources and provides an objective view of the charity.

Mark Tilley (Treasurer) is an IT expert, and he and Rita wrote and developed the website; he is treasurer and advises on things technical and financial. He is married to a Togolese lady and has a wide knowledge of Africa.

Archana Gregory is a Kenyan Citizen. She was born and lived in Kenya until she was 18 when she moved to the UK for education. She returned to Kenya for a year and was a valuable member of the Mustard Seed Foundation Board. Archana is very pragmatic, is qualified in business and IT, speaks Swahili, understands the culture and is young. She knows Mgongeni, many of the people, and understands the problems. The land was bought in Archana’s name as only Kenyans can own freehold land.

Julie Berry has for many years shown a keen interest in the charity. Julie is a younger member of the board who will play a key part in future planning and the sustainability of the project. She is an expert in IT with a vast knowledge of social media and has useful contacts in commercial organisations who may be encouraged to raise money for the project and sponsorships.

Nicola Hinton is the daughter of the founders of the charity. She has a doctorate in Clinical Psychology and is employed by the NHS where she has set up a unit to identify people with mental health problems who may be radicalised by terrorists. Nicola has visited the project on several occasions and has grown up with it from the beginning. She has experience of fund raising and through her job has many influential contacts.

Charlotte Wade has many years experience in education; she has been a Head of English and assistant Head in several schools in London. She joined the staff as a volunteer for 5 weeks in 2018. She made an instant impact with the teachers and children. She fitted in immediately and worked individually with all the teachers in upper school sharing her experiences, giving advice and guidance. They all learnt more practical methods to improve their teaching in 5 weeks than in years at college. She continues to provide remote support with teaching and learning and is making a trip to the school in February 2023.

The Foundation Board is based in Kenya and with the exception of one UK Trustee, consists of members of the local community. They all have a wide knowledge of the area, its problems, the people, culture and customs plus skills and experience. Winnie, the chair,

is a retired nurse/midwife. Joshua is headteacher of a large local primary school, and has lots of knowledge and experience that is invaluable in supporting the school and the teachers. Joshua is also the school manager and provides support and advice to the head teacher. Flora is a retired nurse/midwife who lives in the community and has a wide knowledge and understanding of the numerous problems faced by the residents. Harry, the senior elder in Mgongeni retired this year and Joyce was invited to replace him. Joyce is a Kenyan who is involved in charity work in Kenya. Joyce spent 8 years living in the UK and understands British as well as Kenyan culture.

Who we are and what we do

The Trustees, who are the directors for the purposes of company law, present their statutory report together with the financial statements of The Mustard Seed Project (Kenya) for the year ended 31st March 2022.

This report fulfils the requirements of the Charities Act 1993 and of the Companies Act 1985. The terms “charity” and “Trustees” which are used in this report and financial statements refer to the “company” and the ‘directors” respectively for the purposes of company law. The financial statements have been prepared in accordance with standard accounting policies and comply with the charity’s Memorandum and Articles of Association, applicable laws and the requirements of Statement of Recommended Practice on “Accounting and Reporting by Charities” issued in March 2005.

Chair’s introduction

Mustard Seed Project (Kenya) is a charity working to improve education in Mgongeni a deprived area of Mombasa. The organisation was established in October 2008, registered in the UK as a company limited by guarantee on 10th December 2008 and registered as a Charity on 5th February 2009.

The Mustard Seed Foundation (Kenya) was established on 6th March 2009 and registered in Kenya on 19th May 2009.

The Objectives of the charity are:

1. The advancement of quality education for children in Mgongeni, Mombasa. Quality Education has involved changing the method of teaching from teaching by rote which is the norm in Kenya to teaching the children to think. Class sizes are 25 with an absolute upper limit of 30. Differentiated learning has been introduced so that each child is working towards its capabilities.

2. The relief of financial hardship and inequality for the community of Mgongeni through the provision of a feeding programme.

Plans for the Future

1. Ongoing improvement to the quality of the education through training and a staff appraisal process.

2. Expand our IT facilities and the training of staff and children.

3. Identifying and raising funds to pay for land for a playground.

Governance and Management

The Mustard Seed Project (Kenya) is a company limited by guarantee, incorporated under the Companies Act 1985. It is also a registered charity. It is incorporated under the terms of a Memorandum and Articles of Association. A board of trustees who are the directors of the company manages the business of the charity. The charity does not have share capital and is limited by guarantee. Each trustee is a member of the charity and in the event of the charity being wound up, is liable to contribute a maximum of £1. The Memorandum of

Association states that the charity is established to relieve poverty, distress and sickness and to advance education in Kenya.

The principal activity of Mustard Seed Project (Kenya) is to improve education and relieve hunger for the children living in deprived communities in Mombasa. The Mustard Seed Project (Kenya) achieves this by running a school that employs well-trained teachers, small class sizes and a rigorous curriculum. The feeding programme benefits the most vulnerable families.

The Mustard Seed Project (Kenya) has registered a Foundation in Kenya, The Mustard Seed Foundation. This has local Kenyan Trustees and the principal objective is to underpin the empowerment, give the community ownership and responsibility and to provide sustainable development. It has decision-making powers and is responsible for the projects. It works in close partnership with the UK charity that retains responsibility for strategy and finance. The finance is controlled by the UK charity.

There are bank accounts in the UK and Kenya, only accessible by the UK trustees that hold most of the funds plus a separate account in Kenya which has money to pay wages and running costs and is accessible by the Kenyan trustees and the head teacher. The board of trustees is responsible for the governance of the charity. The board is empowered to co-opt other trustees up to a maximum of nine. Trustees may be removed by ordinary resolution of the charity. People who have been responsible, active volunteers often fill vacancies on the board, as do people introduced by the Trustees and people who are known to the Board.

Applicants undergo a selection process to evaluate their knowledge, skills, contribution and level of commitment. They need skills that will further the success of the charity. New trustees participate in an induction programme covering their responsibilities as trustees and an introduction to the organisation and activities of The Mustard Seed Project (Kenya). There is also constant regard to the skills mix of the trustees to ensure that the board has all the necessary skills required to contribute fully to the charity’s development.

The following trustees were in office at 31 March 2022

Rita Fowler - Chair

Lynne Smith - Secretary Mark Tilley - Treasurer

Archana Gregory

Julie Berry

Nicola Jayne Hinton

Charlotte Wade

The Board has no sub-committees. Individual trustees take responsibility for activities where they have knowledge and expertise. There are registered volunteers who are mainly involved in administration, fund-raising and organising events. There are no employees in the UK. In Kenya there are 20 full-time employees plus an askari and 3 cooks who are employed by the Kenyan Foundation.

Statement of trustees’ responsibilities

Company law requires the trustees to prepare financial statements that give a true and fair view of the state of the affairs of the charity at the end of the financial year and of its surplus or deficit for the financial year.

In preparing financial statements giving a true and fair view, the trustees are required to:

• ♦ select suitable accounting policies and then apply them consistently;

• ♦ make judgments and estimates that are reasonable and prudent;

• ♦state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• ♦prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for maintaining proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and which enables them to ensure that the financial statements comply with the Companies Act 1985.

The trustees are also responsible for safeguarding the assets of the charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities. Every reasonable measure is taken to ensure that the report and financial statements are unaltered. The trustees are responsible for the maintenance and integrity of the financial statements presented on the charity website.

Risk management

The trustees have assessed the charity’s exposure to major risks, in particular those relating to the specific operational areas of the charity and its finances. The trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks.

The principal external risks faced by The Mustard Seed Project (Kenya) are the unforeseen collapse of the income base, and political unrest or natural disaster in Kenya. In respect of the first, Mustard Seed Project (Kenya) has very little ongoing expenditure. The school requires subsidizing and money is kept in reserve to cover a minimum 3 months costs. All the organisation’s other commitments are for capital items, new projects or training. Packages of work are only started when there is money available. The trustees therefore consider the risks to be low.

In respect of political unrest or natural disaster, as indicated in the section of this report on reserves, the trustees aim to maintain reserves sufficient to enable the organisation to respond to emergencies. Additional concern is the world economic crisis that is making fund raising difficult. There is also very high food inflation in Kenya that is forcing more people to live below the breadline.

Financial review

The Mustard Seeds Project (Kenya) is now an established company. Charitable Trusts, which have been a major source of income, have less money to give away whilst many more charities are seeking their funds. Even very good bids have failed. Some trusts have changed their criteria and others have concentrated on the UK and withdrawn from Overseas. Our regular donors have stayed very supportive but the one off contributions have reduced. The answer is to continue increasing our efforts.

The small deficit was for work carried out in the previous year and the money was in the surplus for that year. The Board continually reviews predicted expenditure and never over commits itself. There is a medium term development plan but the financial plan is only for one year. No major expenditure will be permitted until the funds have been secured. The Board is keen to maintain control and not commit to more than one large development at a time.

The Board’s overall objec\ves are:

• ♦ to increase total income to meet objectives

• ♦to raise funds from a wider range of donors and grants so that the organisation is not dependent on a single source.

• ♦ to manage expenditure effectively and within budget;

• ♦ to build the reserves.

Reserves policy

The trustees have agreed that The Mustard Seed Project (Kenya) should aim to maintain sufficient reserves primarily to:

• ♦ ensure adequate working capital;

♦meet capital expenditure needs for the year ahead; the new guideline for reserves is that there should be at least 3 months revenue costs plus any other liabilities. This has been increased because of the political and economic uncertainties in both the UK and Kenya which could present a major risk and over which we have no control; without reserves they could quickly impact on our financial security. Action is being taken to increase the reserves. The situation is regularly monitored and if things stabilize money can be released for construction or to buy resources.

Investment policy

The trustees are empowered by the Memorandum of Association to invest the monies of the charity not immediately required for its objects in such investments, securities or property as may be thought fit. With limited reserves this does not apply at present any surplus is maintained in a bank account with ready access. Interest rates are higher in Kenya than in the UK.

Auditors

As the income of the charity is more than £25,000, the accounts have been examined by an independent examiner who is an ex-bank manager and has many years experience and knowledge of company accounts.

Supporter and Contributors

The Trustees would like to thank all those organisations and individuals who have made donations; without your help and support our activities would not be possible. The Trustees would also like to acknowledge the great contribution made by everyone connected with The Mustard Seed Project (Kenya) including our staff and trustees in Mgongeni and the many that support individually both financially or with their time and skills.

Approved by the Trustees and signed on their behalf by:

Director________

Mustard Seed Project Mustard Seed Project (Kenya) Profit and Loss Account For the Year ended 31 March 2022 2022 2021 Donations (Unrestricted) Gra nts (Restricted) Gift Aid to be reclaimed Gift Aid claimed and received Gift Aid interest received School fees (Kenya) 23,714 40,649 2,968 40,042 49,410 1,590 2,105 27,190 8,888 Total Income 94,525 102,035 Expenses - charitable activities Kenya outgoings {unrestricted) Kenya outgoings {restricted) Expenses - fundraising costs Expenses - governance and administration Kenya travel costs UK expenses Depreciation Write off to balance sheet Total operating costs 11,492 36,000 170 79,669 74,410 95 259 1,444 664 286 48,205 156,281 Gross surplus/deficit 46,320 -54,246

Mustard Seed Project Mustsrd Seed Project (Kenya) Balance Sheel For the Year ending 31 March 2022 2022 2021 FIXED ASSETS Fixtures & Fitbngs Computets & Equipment Total 8uildin8S W911 At l April Additions 227,733 4,850 1.376 237,583 1,376 134,983 102,600 At 31 March 227,733 6.226 238,959 237,583 reciation: At l April Provided for the year 3.370 286 SL25% 5.370 286 4,706 664 At 31 March 3,656 5,656 5,370 Net Book Value= At 31 March 227,733 2,570 233,303 232,213 CURRENT ASSETS Gift Aid to be reclairned 2,968 1,590 Sundry debtors and p￿payMentS Cash Èt bank IU.K.. unrestrirtedl Cash 3t bank Iu.K., re5trictedl Cash at bank (Kenya, unrestricted) Cash at bank (Kenya, reSt￿Cted) 31.308 22,649 26,307 6,428 19,608 9,000 83,231 36,626 Trustee5' Loan Account Sundry creditors 83,231 36,626 316,535 268,839 General fund balance at i April Addition5 to a55et5 Surplusldeficit for the year 268,839 1,376 46,120 316,535 220,485 102,600 -54,246 268,839 Not•.. Kenya bank balances at 31 March coNerted at 151.1)8 KEsI£

Mustard Seed Project CHARITY COMMISSION FOR ENGIANO AND WALE5 Independent examinerfs report on the accounts Report to the trust¢esl members of MuslaTd Seed Project (Kenya On accounts for th• yèar ended 3K q-, LKN2c rf 2oZL Charity no Ilf any) 1127935 Sèt out on pages I report to Ihe ￿$teeS on tny examinaboTr ofthe accounts oflh8 a￿Ve charity 1.the Twsl") Ihe year ended Responsibilities and basis of report As the chantys tmslees. you are resry)nsible forthe prepar3th?n oflhÈ accounts in accordance with the requirements of the Charities Act 2011 1.the Act"). I report in respect of my examination of the Trust's accounts carried oul nder section 145 of the 2011 Act and In caryirHJ out tny examinaknon. I have followed all the applicab￿ DI￿￿On$ given by the Charity Cornmiwon Ur￿er se¢tion 14515llbl of Ihe Act. Independent examinees statement I have completed rny examinaDon_ I confinn that no material mattets have Come to my attention in connection ￿1h Ihe ÈxaminatK)n. I have no COn￿m$ and have come across no olher mattets in wnnedw)n th the exarnin8t￿n lo whid) attenDon shcxjkl ￿ drawn in thi5 rÈpcrt. . Pleas8 d81ete Ihè wonls in the brack￿$ if Iheydo notopply. Date- Slgned-. Name: Relevant profe$slonal qualificatlonlsl or body lif any).. Address- Lit￿¢