## **MUSTARD SEED PROJECT (KENYA)** ## **REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDING 31 MARCH 2024** ## **The new school playground** ## **Registered Company Number: 6778042** **Registered Charity Number: 1127935** ## **MUSTARD SEED PROJECT (KENYA)** ## **CONTENTS OF THE ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 MARCH 2024** ||**Page**| |---|---| |**Report of the Trustees**|**5**| |**What Happened This Year**|**6**| |**Donors and Supporters**|**8**| |**Governance Structure and Management**|**8**| |**Financial review**|**16**| |**Independent Examiners Report**|**??**| |**Profit and loss account**|**??**| |**Balance Sheet**|**??**| |**Notes to the Financial Statements**|**??**| ## **REPORT OF THE TRUSTEES FOR YEAR ENDING 31st MARCH 2024** 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 2024. 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 2024** 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 2024** ## **What Happened This Year** The ongoing drought and the economic climate, especially the high cost of food and essentials in Kenya continues to blight the lives of our community. The long-lasting effects of COVID-19 have negatively impacted many local businesses, unemployment remains high and families struggle to support themselves. Miche Bora school, however, continues to provide a beacon of support in both the feeding programme and the dedication of the staff in making an enormous difference to the children’s lives both at school and beyond. ## Q1 A new system of class prefects and the selection of a Head Girl and a Head Boy has been implemented. Safety around school has been prioritised and the outstanding snagging issues have been addressed, such as the balcony rail installation and tiling in the boys’ toilets. Budgeting to mitigate inflation has taken the form of determining ‘forwards’ at a fixed exchange rate throughout the year. This and the use of a broker has avoided very poor exchange rates and an effective use of operational funding. Solar lighting has been purchased from a charity who provide solar lighting in rural areas – this has improved the light levels in the one dark classroom when the electricity fails. ## Q2 The children were taken to a nearby safari to experience Kenyan wildlife. Much time has been devoted to achieving the Junior Secondary School Status for Miche Bora. Liaison with the school inspector over multiple areas of compliance for JSS status include: a playground, science facilities and curriculum areas such as music. The positive impact from two excellent qualified teacher volunteers must be noted. ## Q3 Rita made her regular October visit, this time supported by two experienced volunteers who contributed teaching, photography and videoing skills to the school (their second period at Miche Bora). The Senior Leadership Team has organically grown to 5, illustrating the maturity of the Head Teacher and her leadership experience. A new focus on Teaching through Objectives is now underway. The playground consisting of three adjacent plots has been found at a total cost of £60,000. ## Q4 Charlie Wade resigned as a Trustee of the charity – we thank her for her considerable contribution to Mustard Seed Project (Kenya). We have since welcomed Tess Wilkins to the board and all the skills of a former secondary language teacher and experienced traveller in Africa that she brings with her. Another potential future board member has been earmarked. The negotiations to obtain JSS status are ongoing. A new female graduate teacher for Maths and Science was successfully recruited. Rita conducted a very successful training day on Gender Equality with the teaching staff which resulted in some unexpected amusement and colleague bonding. The charity was able to help a former pupil who had subjected to enslavement in Nairobi. The playground is being rented and in use whilst negotiations to purchase the entire plot in three phases gets underway. Rita continues to see progression and self-development of Irene the headteacher and her wider Senior Leadership Team. This is evident from the initiatives that come from the teaching staff themselves, without prompting or direction. At the December 2023 Trustees meeting, it was agreed to increase the teachers’ salaries due to the increasing food prices and inflation. ## **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 £18,500 was raised in 2023. We continue to receive a number of 'gifts in kind' from In Kind Direct. These allow the charity to provide our school with consumables, e.g sanitary towels, pencils and with equipment that would otherwise be unaffordable. Jude Bellingham continues to be our most high profile supporter. He also has a fundraising page. Several UK schools continue to support us with fundraising and donations of used school shoes. We are very fortunate to have a number of loyal supporters who make regular donations to the charity which enable us to continue. ## **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 with a seventh trustee committed to visiting in September 2024. The following trustees were in office as at 31 March 2024: - Rita Fowler - Chair - Lynne Smith - Secretary - Mark Tilley - Treasurer - Archana Gregory - Julie Berry - Nicola Jayne Hinton - Charlotte Wade **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 and Lynne made a visit to Kenya in February 2024. 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 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 and recently retired from commercial work leaving her more time to devote to the work as a trustee. **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. 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 has made a trip to the school in February 2024. 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 Mbungoni 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 2024.. 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 Mbungoni, 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 Mbungoni, 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 Mbungoni 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. Meet all the prerequisites for Junior Secondary School status. 3. Raising funds to purchase an identified plot of land for a school playground. The land comprises 3 lots and will be acquired in 3 phases. ## **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 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, particularly 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 subsidising 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. One small positive shows food inflation in Kenya steadily decreasing over this reporting period: in February 2024 the rate was 6.9% compared to 15.8% in October 2022. ## **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 objectives 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 stabilise 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 of experience and knowledge of company accounting. ## **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 Trustees of Mustard Seed Project (Kenya) including our staff and trustees in Mbungoni and the many that support individually both financially or with their time and skills. Approved by the Trustees on 20 December 2024 Mustard Seed Project Profft and Loss Account For the Year ended 31 March 2024 2024 2023 Donations/Grants (Unrestrirted) Donations/Grants (Restrirted) Gift Aid to be redaimed Gift Aid received lJustGrYingl Gift Aid interest received Schwl fees (Kenya) 43.732 4.016 2.079 997 32,176 14,382 2,307 3.111 31 27.817 Totsl Income 72,858 79,8(M) Expenses. charilable adi¥iknes Kerrya outgoings lunrestrirtedl Kerya outgoings Irestrictedl Expenses- fuThJraising costs Expenses- governan￿ and administrallon Travel costs 87,579 4,016 961 58,481 37,031 617 4,659 4,271 1,981 UK expenses Depreciats'on Write off to balan￿ Sheet Totsl operating costs 399 2,007 -10 103.467 101.870 Gross surplusldeficit Bank charges Operating surplusldeficit -22,070 62 -30.671 -22,134 Interest received Surplus/deftcit for the financial year -30,671 -22,134 Mustard Seed Project a better futhre Balance Sheel For the Year ending 31 March 2024 2024 2023 FIXED ASSETS Land & Buildings Fixiure¥ & Frttingy T¢Aal & Equipment At l April Addition5 227.733 6.226 245.959 238,959 At31 Marth 248.133 6.226 266.359 245,959 eciation: At I April Provided for the ￿ar 3.913 231 SL25% 3.750 1.750 7.663 1.981 5.656 2.CQ7 io% At31 M•rth 4.144 5.500 7,663 Nel Book Value: At 31 March 248.133 2.C¢2 3.Q)O 2%.715 238.297 CURRENT ASs￿s Gift to be recl4imed 2.079 2.307 Sundry debtor5 afid prepa￿ts Cash at bank IU.K., uTrre5trKted Cash at bank IU.K., reArictedl Cash at bank IKenya. unrestricted) Cash at bank (Kenya. rèstrictedl ForvArd contr•cts. dutto m•tur* in n•xt y••r 10.707 40,403 18.229 16.795 34.415 63,105 LESS CURRENT LIABILITIES Trusiee5' Loan Account Sundry credrtors 34,415 63,105 TOTALASSETS 291.130 301,401 REPRESENTED BY General fund balance at l April Additions to 301.401 20.400 -30,671 291.130 316.53S Surplu5ldeficit forthe -22,134 301.401 Note.. 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