# ANNUAL ACCOUNTS 



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## CONTENTS 

About Us 4 CEO's Report 6 Message From The Founder 12 Chair of Trustees' Statement 14 Strategic Report 20 Our Campaigns 24 Financial Review 56 The Trustees 70 Independent Auditor's Report 82 Financial Statements 88 

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## ABOUT US 

Penny Appeal is an award-winning, international, and domestic relief humanitarian charity set up in 2009, providing poverty relief to over 30 crisis-hit countries around the world, as well as at home in the UK. 

Our aims are simple - to transform lives and empower communities through effective immediate aid and long-term sustainable projects. 

Our work is inspired by the teachings of Islam, the uncompromising valuation of human life, and the spirit of selflessness advocated by the following Qur’anic verse: 

## _‘...whoever saves a life, it is as if he has saved the entire humanity’_ (5:32) 

Our programmes consist of emergency support, short-term relief, and longer-term sustainable interventions, and have reached destitute, hard to reach and disadvantaged communities around the world. 

By providing emergency food and medical aid, supporting women’s empowerment initiatives, creating water solutions, and supporting orphan care, we have helped to break the poverty cycle, empowering communities, and creating enduring change for years to come. 

Whilst we regularly provide support in 30 countries, over our history we have worked in over 60 countries around the world. Penny Appeal (the “Charity”) creates high impact through asking people to donate just a few pennies each day, making charitable giving affordable and rewardable for donors and ensuring that everyone can play their part in helping the poor and needy. 


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## A YEAR OF RESILIENCE AND IMPACT: 

## CEO'S REPORT FOR FINANCIAL YEAR 2022 

Dear Supporters and Stakeholders, I'm delighted to present my inaugural CEO report for Penny Appeal, which encapsulates our journey throughout the financial year 2022. 

Having taken the reins as CEO in February 2023, I've found the subsequent months to be both challenging and incredibly rewarding. I feel truly honoured to steer this remarkable organisation forward, as we amplify our positive impact on vulnerable communities worldwide. 

2022 was a year in which we returned to normal programmatic delivery after the Covid-19 pandemic. As restrictions were lifted around the world, we sought to re-evaluate our programmes priorities, working extensively to respond to emergencies such as the Pakistan floods and ongoing Syria crisis. 

Simultaneously, we adopted a laser-focused approach to amplify our impact communication. Through real-time updates delivered directly to our donor base via emails, SMS, and various feedback channels, we ensured an unparalleled level of transparency and engagement. 

In navigating the complexities of a post-pandemic world, we emerged not just to 'normalcy' but to a heightened standard of excellence in our mission to make a profound and lasting difference in the lives of those who need us most. 

From the onset of my tenure, I had the fortune to work alongside a team who are not just committed, but deeply passionate about our cause. We are actively working to enhance our business processes in alignment with our dedication to good governance. 

We have made significant progress, addressing challenges and refining our long-term strategic vision along the way. We also undertook an exhaustive review of our operations, reinforcing our pillars of transparency, accountability, and tangible impact. 

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## A YEAR OF RESILIENCE AND IMPACT: 

## CEO'S REPORT FOR FINANCIAL YEAR 2022 

## Answering the Call: Emergency Response and Beyond 

Having had the honour to be a core part of Penny Appeal’s Emergency Response team for many years, I'm proud of our swift and efficient delivery of crucial aid to those in crisis situations. 

A poignant example from this past year are the catastrophic floods in Pakistan, the legacy of which continue to hold so much of the country back. This disaster inflicted hardships not seen for a generation, displacing countless families and causing extensive damage. 

Yet, Penny Appeal’s ground teams were amongst the first to respond, supplying essentials like food, clean water, and temporary shelter to those impacted. Our ability to act promptly in such crises stands as a testimony to our dedication to alleviate human suffering. 

Post-emergency, we initiated the ‘Rebuilding Pakistan’ campaign, aimed at offering sustainable relief to those impacted by the floods. 

Thanks to the unwavering support from our donors, we constructed permanent homes, allowing families to rebuild their lives in secure and stable environments. 



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## A YEAR OF RESILIENCE AND IMPACT: 

CEO'S REPORT FOR FINANCIAL YEAR 2022 

## Financial Highlights and the Road Ahead 

In terms of finances, our organisation generated an income of £23,086,238 for the year 2022, up from £16,188,549 for the prior reporting period of May-December 2021. Again, this speaks volumes about the continued support we receive from our generous donors. Our expenditure on charitable activities stood at £15,273,026, contrasted with £13,115,773 from the previous year. 

In 2022, our program timelines extended into 2023, resulting in a slight decrease in charitable spending as a percentage of revenue. However, we anticipate an above-average expenditure in 2023. Additionally, we made strategic investments in governance, infrastructure, and technical advancements during 2022. These initiatives are designed to strengthen our systems, improve controls, and streamline processes, ultimately maximizing our impact for those we served. 

Political and economic shifts in the Western world coupled with the lasting effects of the global pandemic on the developing world, means charities face a new and uncertain terrain. As we cast our eyes towards the future, we renew our dedication to serving those in need, whether close to home or across borders. 

The hurdles might be big, but our resolve is bigger. With your ongoing support, we will continue to confront these challenges head-on, striving to enrich the lives of those who rely on us. Thank you for entrusting Penny Appeal with your support, and for being an integral part of our mission to transform small change into big difference. 

Warm regards, 


**Ridwana Wallace-Laher** CEO, Penny Appeal 

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## A HEARTFELT MESSAGE FROM THE FOUNDER 

I'm truly honoured to share with you the remarkable achievements and milestones of Penny Appeal during the 2022 financial year. 

This year was incredibly significant for us as we expanded, adapted, and redoubled our efforts towards fulfilling our mission, transforming small change into a big difference for those who need us most. 

Reflecting on our journey, I am filled with pride at the progress we’ve made and the lives we’ve touched. 

My heartfelt gratitude goes out to our dedicated board, committed staff, generous donors and inspirational volunteers. 

Each has rallied behind our charitable initiatives throughout 2022, empowering us to assist millions of people over the last 14 years. Together we are the small change that makes a big difference. 

## BE THE[(] SMALL[)] CHANGE 

Here at Penny Appeal, we firmly believe in the potential for every contribution, little or large, to make a monumental impact. 

Our outreach has extended from local communities in Yorkshire all the way to Yemen, thanks to supporters like you. 

A particular highlight was our 2022 Ramadan campaign, themed 'Come Together’. After the pandemic forced us to socially isolate, extracting so much of the communal dimension of the previous Ramadan, this year’s theme could not have been more timely. 

Finally, families were able to share iftars and mosques were open for Tarawih once again. In an increasingly divided world, the need to build unity and foster compassion within our communities has never been more pressing. 


This driving principle has been at the heart of our work throughout the year, healing from the layers of trauma the pandemic has wreaked on communities, not just in the UK but around the world. 

As we remain steadfast in our mission, the ongoing dedication of each of our supporters fuels our determination. I invite you to continue your journey with us as we strive to create a fairer, more equitable, and compassionate global community. 

## A NEW HOME – A NEW START 

Embracing change is part and parcel of growth and progress at Penny Appeal. 2022 heralded significant changes for us, including the inauguration of our new headquarters, the Penny Appeal Campus in Wakefield. 

This campus serves not only as our operational hub but also as a collaborative space for local community organisations, doubling up as a source of sustainable funding for Penny Appeal’s operations through the rent we collect from partners housed throughout our Campus. 

The road ahead is filled with challenges, but also abundant opportunities. We have reached millions and there are still millions more who need our help. 

Every life matters and every life counts. With your unwavering support, we're poised to continue to make a lasting impact in the lives of the vulnerable, both here in the UK and across the world, for years to come. 

Thank you for being an invaluable part of the Penny Appeal family, and for your enduring commitment to our shared vision. 


**Adeem Younis** Founder & Trustee, Penny Appeal 

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## A WARM WELCOME FROM THE CHAIRMAN: 

## NAVIGATING THROUGH CHANGE, ELEVATING IMPACT 

Dear Friends and Supporters, 

It's with immense pleasure that I welcome you to Penny Appeal's 2022 Annual Report. As the Chair of the Board of Trustees, the privilege and honour are mine to guide you through an inspiring journey, our collective efforts to drive small change into a big difference for those who need us most. 

Strengthening Foundations: A New Chapter in Governance and Leadership We find ourselves at an important juncture in our journey. As reported in past Annual Reports’ the Charity has continued to cooperate and liaise with the Charity Commission. Following this process the Charity Commission issued an Official Warning, in September 2023. 

In line with their recommendations, we have embarked on a rigorous review of our governance, focusing on areas such as historical record-keeping and contract management. 

We are committed to working closely with them as part of our continuous commitment to the highest level of governance, best practice and robust controls. 

Far from being a setback, we have welcomed this invaluable opportunity for introspection and growth. We've not only implemented key corrective actions but have also embarked on a broader transformative journey, marked notably by the appointment of a renewed, diverse, and exceptionally talented Board of Trustees. 

Equally groundbreaking is the appointment of our new Senior Leadership Team (SLT), led by an extraordinary CEO—the first Muslim woman to hold such a high-ranking position in the Muslim charities sector. 


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## A WARM WELCOME FROM THE CHAIRMAN: 


The new team, along with the board, are fully committed to a continuous journey of governance excellence. As part of this, we have: 

Ensured continuous improvements to our procurement and tendering processes when assessing the value of contracts. The team will continue to work closely with our sub-committees in ensuring strong governance is implemented. 

Strategically retained two properties as long-term assets to fortify our financial standing and advance our charitable objectives. 

Initiated a comprehensive conflict of interest policy, designed by external experts, to guarantee utmost integrity in our operations. The Board of Trustees and Senior Leadership Team are continuously working to address any actual and perceived conflicts and we recognise the development work this integral governance process necessitates. 

Recognise that we must continue to strive for excellence and strengthen our governance processes. This will be achieved through reviewing, revising, and improving our policies and where necessary having independent audits to support our work. 

## LEARNING LESSONS, INSPIRING ACTION 

Acknowledging past challenges has been humbling but instructive. Our commitment now lies in translating these lessons into actions that serve our communities better than ever. 

This report highlights numerous programmes and initiatives, from delivering essential humanitarian aid to educational upliftment, that underscore our resolve to create a meaningful and lasting impact. 

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## A WARM WELCOME FROM THE CHAIRMAN: 

A Future Crafted by Shared Commitment and Unyielding Resolve 

As we write this new chapter, your continued presence and support remain invaluable. Whether through financial contributions, volunteering, or advocacy, you are an irreplaceable part of the Penny Appeal family. 

The diverse and impactful campaigns we have launched, from Morocco to Pakistan, speak volumes about what we can achieve together. 

I invite you to explore this report, relish our joint achievements, and share our excitement for a future where compassion and humanity are the orders of the day. 

Rest assured, our future actions will keep strengthening our organisation, enhancing our governance, and enriching the lives of those we serve. 

In heartfelt appreciation, 


**Mohammed Jahangir** 

Chair of the Board of Trustees 


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## STRATEGIC REPORT 

## — OUR VISION 

Transform small change into a BIG difference for those who need us most. 

## — OUR MISSION 

## Penny Appeal was launched in 2009 with the objective of turning small change into BIG difference. 

The Charity has grown rapidly and now has programmes in over 30 countries around the world. Whilst the fundamental vision and mission has not changed, it is recognised that we must continue to evolve to ensure that we are prepared for the next phase of our development. 

Inspired by the universal values of the Islamic faith, our mission is to serve all those in need at home and abroad. 

## — HIGH-LEVEL STRATEGIC OBJECTIVES 

**1.** Deliver high quality programmes 

**2.** Raise and disburse funds ethically and effectively 

In 2020, we entered into an internal consultation period to update our 5-year strategy, with the overarching vision of ensuring a caring world that empowers communities, provide sustainable solutions out of poverty and transform the lives of individuals. 

This review work continued during the reporting period, to finalise revisions. All that we seek to do is built on a firm commitment to equal opportunities, inspired by the Islamic faith. 

We seek to deliver an integrated and holistic approach to addressing poverty and inequality working closely with communities, by building strong community-level partnerships ensuring that the voices of those we work with are at the front and centre of what we do. 


**3.** Invest in our people and infrastructure 

**4.** Strengthen the Penny Appeal family and global brand 

## — FIVE-YEAR STRATEGIC OBJECTIVES 

**1.** Become the best-in-class Muslim charity 

**2.** Raise £100 million for good causes 

**3.** Be among the Times top 100 employers 

**4.** Be the most recognisable Muslim brand globally 

Our commitment to delivering high-quality programmes is at the core of our existence. From sustainable development projects to emergency relief efforts, each initiative is meticulously designed to create a lasting impact. By focusing on the quality of our programmes, we are not only meeting the immediate needs of communities but also contributing to our overarching vision of making a significant difference. 

Contributing in particular to High-level Strategic Objectives 1 & 2, and also to Five-year Strategic Objective 1, our programmes in 2022 exemplified a steadfast commitment to excellence. Each initiative, whether addressing the urgent needs in the aftermath of the Pakistan Floods or participating in the long-term recovery of Syria through our Rebuilding Syria appeal, was meticulously crafted to meet the highest standards of impact and effectiveness. 

By ensuring that our programmes are not only responsive but also sustainable, we are actively advancing our goal of becoming the best-in-class Muslim charity. Moreover, our Thirst Relief programme stands as a testament to our dedication to delivering high-quality solutions to pressing global issues. Our WASH efforts extend beyond immediate relief, addressing the fundamental right to clean drinking water while also improving access to education and food security. This initiative aligns seamlessly with our commitment to excellence, ensuring that the impact of our programs reaches far beyond the initial intervention. In tandem, Education First has been a beacon of transformative impact, breaking barriers and unlocking potential for countless children. 

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## STRATEGIC REPORT 

By constructing and refurbishing schools, providing educational resources, and promoting comprehensive welfare for vulnerable children, we not only meet the immediate educational needs but also contribute to sustainable community development. 

This focus on education aligns with our dedication to delivering high-quality programs and, in turn, supports our aspiration to become the best-in-class Muslim charity. Additionally, our commitment to excellence extends to the heart of our communities, evident in our prison mentorships project. 

By investing in the rehabilitation and reintegration of individuals within the criminal justice system, we contribute to the broader vision of delivering high-quality programs that prioritize the well-being and growth of people. Fundraising is not just a means to an end for us; it's a responsibility. 

We strive to raise and disburse funds ethically and effectively, ensuring that every penny entrusted to us makes a meaningful impact. Our five-year objective of raising £100 million aligns with this commitment, reflecting our determination to do good on a larger scale. Our people are the heartbeat of Penny Appeal, and investing in them is investing in our future. 

By nurturing talent, providing opportunities, and strengthening our technological infrastructure (which includes our new CRM system), we ensure the sustainability and growth of our mission. 

Our dedication to our personnel and organisational structure is an embodiment of our strategic vision. Aiming to be among the Times top 100 employers is a testament to our dedication to our people and culture. By creating a workplace that fosters growth, diversity, and inclusivity, we not only attract the best talent but also contribute to the broader narrative of responsible and compassionate corporate practices. 

In pursuit of recruiting a diverse and inclusive team, we have engaged both specialist recruiters as well as our own HR team to ensure candidates for vacant positions are drawn from the widest pool possible. 


Our Performance and Development Review process ensures a bespoke level of support and monitoring for each colleague to help them grow and develop in their respective field. Additionally, our monthly ‘Tea and Talk’ all-staff meetings give colleagues from across the organisation the opportunity to present and showcase their work to our team across the UK. 

We understand that our impact is not only measured in numbers but also in the strength of our family and brand. By fostering a sense of unity within the Penny Appeal family and working towards becoming the most recognisable Muslim brand globally, we amplify our reach and influence. 

This collective strength is pivotal in achieving our long-term strategic goals. Our aspiration to be the best-in-class Muslim charity is more than a goal; it's a commitment to excellence. 

Through innovation, transparency, and a relentless pursuit of improvement, we aim to set the standard for impactful humanitarian work within the Muslim charity sector. 

As we reflect on our past accomplishments and look forward to the future, each programmatic endeavour is a step toward realizing our high-level and five-year strategic goals. With our vision as our guiding light, we are transforming aspirations into actions, turning small change into a big difference for those who need us most. 

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## ADOPT A GRAN: 

OFFERING A LIFELINE TO THE FORGOTTEN ELDERLY. 

## Tackling the Elderly Care Crisis: A Growing Concern 

With an ageing global population, the crisis surrounding elderly care has become increasingly urgent. More and more of our elders find themselves in poverty and isolation, devoid of much-needed support. Enter our transformative 'Adopt A Gran' sponsorship programme. This essential safety net provides targeted assistance to elderly people in need. 

Ranging from financial help to nourishing meals and admission to care homes, we make sure every elderly individual we serve lives in dignity and comfort. Fuelled by the generosity of our donors, we are committed to ensuring that no elderly person is overlooked or left vulnerable in the communities we impact. 

## A Lifeline in Punjab: Muhammad Ashraf's Journey 

Meet Muhammad Ashraf, hailing from a modest village in Punjab. Though he's faced numerous hardships, he devoted his life to labouring and shepherding. When he most needed his son's support in his old age, he found himself abandoned and left to fend for himself. Occupying a small room and employed as a security guard, Muhammad Ashraf's deteriorating health made it impossible for him to sustain this role. Initially, he sought refuge in another care home but found neither the care nor the contentment he needed. 

Enter Mr. Zakir, a compassionate resident of Penny Appeal's Adopt A Gran care home. He assisted Muhammad Ashraf in gaining a place in our specialised home. When he arrived, Muhammad Ashraf was speech-impaired, physically weak, and facing severe kidney issues. 

Thanks to the tailored care he received from Penny Appeal, his condition has vastly improved. Today, he can engage in conversations, walk unaided, and is receiving ongoing treatment for his kidneys. 

Muhammad Ashraf's heartfelt gratitude towards Penny Appeal’s elderly home is immeasurable. He finds peace and comfort in the level of care he receives and offers prayers for his supporters, including each of our donors. His incredible turnaround stands as a shining example of the 'Adopt A Gran' programme's success. 



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## EDUCATION FIRST: 

## UNLOCKING FUTURE POTENTIAL, ONE CHILD AT A TIME 

The transformative power of education cannot be overstated. 

It shapes individuals, communities, and indeed the fabric of society. Yet, it's a grim reality that nearly 60 million primary-aged children are deprived of this fundamental right. Socio-economic, cultural, and political barriers often prevent children from stepping into classrooms. 

That's why at Penny Appeal, we’re breaking down these barriers through impactful initiatives such as our OrphanKind programme, which offers scholarships, financial support and comprehensive welfare for families unable to afford the costs of vulnerable children. 

Child labour is another alarming impediment to education. In the past, we've launched livelihood projects providing vocational training for parents, thereby enabling them to secure employment without compromising their children's education. One remaining significant hurdle is inadequate educational infrastructure, especially in disadvantaged communities. 

This is where our Education First programme really shines, working across the world to construct and refurbish schools to not meet essential standards, but offer children the best possible education we can. 

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## EDUCATION FIRST: 

## UNLOCKING FUTURE POTENTIAL, ONE CHILD AT A TIME 

## An Education Transformation: The Girls’ Primary School in Multan District 

Within our Education First framework, we recently upgraded a girls' primary school in Multan District, Punjab. Apart from the essential construction work, a critical aspect of the project was the emphasis on health & hygiene. 

We energised the local community and rejuvenated the previously inactive health club at the school, where our team also conducted health and hygiene training sessions. 

## Aqsa's Journey: From Classroom to Community Hero 

Take Aqsa, a 5th-grade student at one of our refurbished schools, for instance. Eagerly participating in health and hygiene discussions, she eagerly soaked in lessons on a range of issues, from water-borne diseases to dengue fever prevention. 

Inspired, Aqsa then shared this newfound wisdom with young girls in her family and community, catalysing a hygiene movement among them. 

Aqsa's passion for effecting positive change is nothing short of inspiring. We're thrilled she's dedicated to spreading awareness on health and hygiene, substantially enhancing the well-being of her community. This is the multiplying impact of Education First and a perfect distillation of how small change can make a big difference. 



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EMERGENCY RESPONSE:
WHEN SECONDS COUNT
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## EMERGENCY RESPONSE: 

## WHEN SECONDS COUNT 

## Always Prepared, Rapidly Responsive 

At Penny Appeal, we're deeply committed to long-term, sustainable initiatives that make significant improvements to people's lives. 

Nevertheless, when disaster strikes, we're poised to act swiftly, delivering emergency aid to save lives globally. 

As a dedicated humanitarian organisation, we adapt our focus within each country to address the specific needs of communities impacted by crises. 

Our approach goes beyond immediate relief; we utilise a dual-phase strategy to support affected communities, not just in survival, but also in their journey towards recovery. 

In 2022, we spearheaded two new shelter-centric recovery appeals: Rebuilding Syria and Rebuilding Pakistan, the latter was initiated following the devastating floods in the region. 

Both appeals have been instrumental in gathering funds to reconstruct infrastructure, offer shelter, and assist those struggling in these crises. 



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## EMERGENCY RESPONSE: 

## PAKISTAN FLOODS: A CATASTROPHE STILL UNFOLDING 

Beginning in late July 2022, relentless monsoon rains have unleashed untold destruction across Pakistan, affecting more than 33 million people. 

Official data indicates over 1,700 lives lost, while the nation's planning minister estimates the damage to be at least £8.5 billion. 

The country, already home to so many vulnerable communities, is bracing for food shortages that extend for years to come, marking this disaster as one of Pakistan's most calamitous periods. 

Since the flood's onset, Penny Appeal has been actively operating in 13 afflicted districts. We've provided emergency meals to tens of thousands, supplied hundreds of thousands of litres of drinking water, and distributed essential hygiene and non-perishable items to hundreds of families. 

Building on our experience from earlier flooding events, where we erected permanent shelters for fishing communities, we extended this initiative in 2022 under the Rebuilding Pakistan appeal. 




## REBUILDING PAKISTAN: FROM RUINS TO RESILIENCE 


The harrowing impact of Pakistan's catastrophic monsoon floods is almost impossible to fathom. 

These floods have claimed thousands of lives and destroyed millions of livelihoods. However, for those who have lost everything, this is not the end of their journey. 

Through our Rebuilding Pakistan appeal, we've financed the construction of permanent brick residences to aid Pakistan's reconstruction efforts. 

Each of these disaster-resilient homes is designed to shelter an entire family for life. We remain committed to offering long-term, sustainable solutions to those impacted by such calamities. 

By working closely with local partners in Pakistan, we aim to ensure these homes secure a brighter future for families who have lost so much, empowering them to lead safer, healthier, and more prosperous lives. 

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## EMERGENCY RESPONSE: 

## REBUILDING SYRIA: FOUNDATIONS FOR A SAFER TOMORROW 

## The Syrian conflict has lamentably touched the lives of millions. 

Displaced by the turmoil, countless families are living permanently in precarious conditions where uncertainty of their futures looms large. Our Rebuilding Syria appeal aims to ameliorate the plight of war victims by offering them safe housing options as they endeavour to reconstruct their lives. 

For those wrenched from the comfort of their own homes, these new residences provide crucial shelter and the promise of a more secure future. 

Our commitment to delivering long-term, sustainable support is unwavering. By partnering with local organisations, we provide not just emergency relief but also sustainable recovery solutions. 

We understand that responsibility is not just to provide emergency relief but to stand by communities as they work to regain their footing after the devastation of crises. 



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## FEED OUR WORLD: 


## FROM HUNGER TO HOPE ACROSS CONTINENTS 

## Nourishing Lives, One Meal at a Time 

Food unites us all, yet over 2 billion people around the globe grapple with hunger daily. Since its inception in 2013, Penny Appeal's Feed Our World programme has been a lifeline, delivering essential food aid to millions in Africa, Asia, and the Middle East, regions often ravaged by famine, conflict, and natural catastrophes. 

But we don't stop at immediate relief. Our focus also lies in empowering families through sustainable farming practices and agricultural training for families in need. Donations to Feed Our World directly support nutritious meals, farming supplies, and skill-building for sustainable agriculture. 

Every single donation has an extensive, positive impact on those who need it most. Fuelled by the commitment of our frontline partners, we are unwavering in our mission to build a future brimming with hope and food security for all. 

## A Second Chance: Asha's Story of Renewed Hope in Somalia 

Asha, a 34-year-old mother, resides in the Kahda refugee camp in Somalia. The three months leading up to Ramadan 2022 were especially brutal for her family. Unforgiving droughts had robbed them of their possessions and left them struggling to survive. 

This dire situation isn't unique to Asha; it's reflective of a broader crisis affecting all of Somalia, reducing many families to just one meal a day, if they're fortunate. 

Amidst these challenges, Penny Appeal's donors rose to the occasion. They furnished Asha's children with wholesome meals, thereby safeguarding their well-being. The period of Ramadan marked the first time in months that Asha's family had access to substantial, quality food. 

Asha was elated to provide her children with nutritious meals, particularly during the Eid celebrations when they broke their fast. Your support is a beacon of hope, enabling us to extend our reach and make meaningful, long-lasting changes in the lives of individuals like Asha and her family. 

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## THE MOSQUE PROJECT: **BRIDGING THE GAP:** 

## More Than a Prayer Space: Mosques as the Lifeline of Communities 

Mosques are not merely places of worship; they function as the beating hearts of Muslim communities, offering essential services and serving as social epicentres. Yet many rural Muslim communities are without dedicated spaces to practise and share their faith. Often they must conduct prayers in open areas earmarked for mosques but remain unbuilt due to financial constraints. 

As a result, these communities also lack essential community centres for administration, prayer, and education. Penny Appeal is dedicated to building mosques in such communities, where the main sources of income are farming and livestock and where people often live below the poverty line. The construction of these mosques, funded by generous donations, makes a world of difference to these communities. 

## From Dream to Reality: How a New Mosque Transformed a Village 

In the secluded village of Mardan District in Khyber Pakhtunkhwa, Mr. Hazrat Jan's lifelong dream of having a nearby mosque has finally come true. Living with his family in this rural location, the 44-year-old farmer had long yearned for a local place of worship. The dream seemed out of reach, given the village's limited financial means. 

However, with Penny Appeal's backing, a brand-new mosque now stands just a stone's throw away from Mr. Hazrat Jan's home. This new facility offers a safe and convenient place for prayer, Quranic study, and Islamic education. 

Before Penny Appeal’s intervention, the nearest mosque was a long distance away, and a significant challenge for residents to reach, especially in extreme weather. Today, they can easily partake in daily prayers, including Jummah and Eid, in this well-equipped mosque. 

With features like a designated ablution area, proper electrification, a submersible water pump, and robust construction, the mosque has improved not only the accessibility of prayer but also the comfort and convenience of daily ablution rituals. 

## Empowering Communities 

The construction of the mosque has done more than fulfil spiritual needs; it has also brought technical knowledge and skills to the community. Under the supervision of Penny Appeal and our local partners, villagers have gained valuable experience in construction techniques, contributing to their community's overall development. 

Mr. Hazrat Jan can hardly contain his gratitude. He has been so touched by the generosity of Penny Appeal’s donors and the positive transformation he has witnessed in his community. 

For Mr. Hazrat Jan and his fellow villagers, this mosque is not just a building; it symbolises a community's aspirations made real. They remain eternally thankful for the support received and look ahead to a promising future, guided by faith and the altruism of Penny Appeal donors. 


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## OPEN YOUR EYES: 


## CLOSING THE GAP IN GLOBAL EYE CARE 

## Vision for All: Illuminating the Path Ahead 

An estimated one billion people across the globe are grappling with preventable or treatable visual impairments. As the world's population burgeons, more individuals are faced with life-limiting vision challenges. Thankfully, many of these impairments are reversible through basic medical interventions. 

Visual impairments have far-reaching implications. Adults find it difficult to maintain employment, parents are hampered in caring for their offspring, and the youth face compounded educational hurdles. 

All of this condemns them to a life of darkness and ensnares them in an unrelenting cycle of poverty. Nonetheless, many of these situations could be circumvented with routine medical check-ups or simple procedures. 

Penny Appeal's Open Your Eyes initiative is committed to extending quality eye care to isolated communities in the developing world. The programme accomplishes this through eye examinations, medications, provision of eyeglasses, and even surgical procedures, restoring sight and improving the quality of life for thousands. 

## Penny Appeal’s Vision for a Better Tomorrow 

At Penny Appeal, our focus remains on ensuring universal access to high-calibre eye care without the barriers of cost or geography. Through restoring sight, and consequently dignity and hope, Open Your Eyes seeks to disrupt the cycle of poverty and offer individuals a renewed opportunity for a brighter future. 

Through the continued support of our donors our campaign continues to remain an ambitious effort to remedy the limitations imposed by visual impairments, enabling individuals to experience life's richness and complexities in all their beauty. 

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## ORPHANKIND: 

## A SAFE HARBOUR FOR VULNERABLE YOUNG LIVES 

## Transforming Lives, One Child at a Time 

No child should face the agonising experience of losing their parents due to war, disease, or natural calamities. Yet, tragically, countless orphans find themselves in tragic situations that make thriving a distant dream. Enter our OrphanKind Programme, a haven of care, love, and support. 

Through this flagship Penny Appeal initiative, we offer children an ladder up and out from poverty and the tools to craft brighter futures. From financial support and tuition-free education to parental counselling, health checks, hygiene training, learning assistance, and spiritual guidance, we're committed to walking beside these children every step of the way. Education is not a privilege but a fundamental right, and we're adamant about providing even the most vulnerable children with quality schooling and opportunities for social mobility. 

## A New Dawn: Khadija's Journey to Stability and Hope 

Khadija's world was thrown into disarray at the tender age of six. A devastating accident took her father, leaving her mother grappling to make ends meet for their large family. The emotional and financial strain wreaked havoc on Khadija's mental health, leading to aggression and panic attacks. 

However, Khadija's life took an uplifting turn after joining the OrphanKind programme. With the security of a nurturing environment, a maternal figure, sibling-like companions, and a structured routine, she has rediscovered emotional stability along with good health and happiness. 

Our mission ensures that no child navigates life's challenges unsupported. We aim to offer every young soul the opportunity to flourish within a positive and caring environment. Khadija's transformation is a living testament to the phenomenal impact this initiative can have on vulnerable young lives, a small change that echoes a big difference for generations to come. In initiatives like OrphanKind, we manifest our unwavering commitment to creating a ripple of hope and transformation for those who need it the most. 



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## PENNY APPEAL AT HOME: 


## LOCAL LOVE, NATIONWIDE IMPACT 

While Penny Appeal is renowned for its global efforts, we're equally committed to continuing to address pressing issues right here in the United Kingdom. Our domestic initiatives are a pivotal part of our mission to aid those in need, both locally and globally. 

## Community Kitchen: Driving Out Hunger, One Meal at a Time 

One standout UK project in 2022 was our Community Kitchen food truck initiative, designed to tackle the growing concern of food insecurity among vulnerable groups across the UK. This mobile kitchen travels to diverse communities, serving hot and nutritious meals to those who need them most. 

But the impact goes beyond just feeding people; the food truck cultivates a sense of community and solidarity. It offers not just a meal, it’s service with a smile proving a welcoming environment for those grappling with isolation or hardship. Additionally, this initiative collaborates closely with local businesses and volunteers, taking a community-based approach to mitigate hunger and poverty. 

## Unlocking Potential: Prison Mentorships for Social Reintegration 

2022 also saw Penny Appeal focus welfare efforts into prison mentorship schemes. Incarceration is a complex and isolating time for many, and we understand the critical imperative of offering support within the criminal justice framework. Our mentorship programme, particularly tailored to those from marginalised communities, aims to equip inmates with the essential skills and knowledge they'll need upon re-entry into society. 

This programme extends its support beyond the prison walls to include post-release aid. Our comprehensive mentorship strategy assists individuals in reshaping their lives, thereby decreasing the likelihood of re-offending, and fostering social reintegration. Through these varied domestic initiatives, Penny Appeal is making a palpable difference in addressing complex social issues within the UK. 

The true measure of these projects' success isn't merely in the number of meals served or mentorships established; it's in the lasting positive impact we make on people’s lives. In addressing challenges like food insecurity and incarceration, we're contributing to the construction of a more inclusive, compassionate, and fair society in the United Kingdom. 

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## THIRST RELIEF: 

## THE FOUNTAIN OF LIFE 

Access to clean drinking water is a fundamental right too often overlooked. It is still hard to believe that around the globe, a staggering 2 billion people lack access to safe, clean drinking water. At Penny Appeal, we're turning the tide with over 41,000 water systems and wells installed across nations like Pakistan, India, Bangladesh, Nepal, Sri Lanka, Somalia, Kashmir, and Uganda serving as lifelines for entire communities. 

However, Thirst Relief is not just about water, it's a gateway to breaking the cycle of poverty. The proximity of water sources eliminates the need for arduous journeys to collect this vital resource, enabling people to channel their energies towards education, family care, and economic endeavours. 

In simple terms, we're adding precious hours back into the lives of those we serve. In recent years, the reach of Thirst Relief has grown substantially. Our services now span a range of water, sanitation, and hygiene (WASH) solutions. With the support of our donors, our Solar Panel Water and Power Centres not only ensure a steady water supply but also power local schools and mosques. 

Our Rainwater Harvesting Systems capture and store monsoon deluges, guaranteeing safe water during drier times. Our holistic WASH village projects tackle the issue from multiple angles, from installing community water supplies and gender-sensitive toilets to educating communities on hygiene best practices. 



## QUENCHING SCHOOL THIRST: A FOCUSED INITIATIVE 

Clean water is as essential in educational settings as it is in homes, yet many schools are ill-equipped due to resource limitations. Most schools operate with just a single water source, falling significantly short of their needs. 

Hand pumps are a simple yet effective solution. Easily maintained and cost-effective, they can significantly contribute to fulfilling water needs in educational settings. 

Take, for example, a government model school in the remote District Multan. Struggling with a single inadequate water source for its 130 students and five staff, they faced a dire situation, particularly during dry seasons. Financial constraints left them unable to address this. That's where Penny Appeal intervened. 

We installed a complete Afridev hand pump well, dramatically improving water availability for both students and teachers. It's not just for drinking; the new water source has also rejuvenated their gardens. 

The school community is now overjoyed and has conveyed their heartfelt thanks to our donors and to the Penny Appeal family. We are proud to continue to bring this precious resource to those who need it most, reshaping communities and lives for the better. 

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## STRATEGIC TRUSTEE VISIT: 

A TURNING POINT IN PENNY APPEAL'S HUMANITARIAN ENDEAVOURS IN PAKISTAN 

The Power of On-Site Governance: Overview of Trustee Mission to Pakistan 

In a strategic decision aligned with Charity Commission guidelines, Penny Appeal trustees embarked on a high-level high-impact mission to Pakistan. 

This strategic visit aimed to accomplish several pivotal objectives: 

- Evaluate firsthand Penny Appeal's humanitarian efforts across various sectors 

- Strengthen partnerships between Penny Appeal UK and Penny Appeal Pakistan. 

- Engage with the Penny Appeal Pakistan leadership team. 

- Review the application of Penny Appeal UK policies and suggest areas for improvement. 

Subsequent to the trustee deployment, the findings and recommendations observed by the trustees have been incorporated into the Strategic Plan for the work of Penny Appeal in Pakistan going forward. 

Furthermore, the deployment has served to further enhance Penny Appeal’s monitoring and evaluation mechanisms on a high-level strategic basis. 


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## GROUND ZERO EXPERIENCE: 

## A PERSONAL REFLECTION FROM MOHAMMED JAHANGIR, CHAIR OF TRUSTEES 

"For many trustees, this trip was a baptism by fire, revealing the harsh realities faced by communities we serve. Juggling packed schedules and braving difficult terrains, we were humbled by our fleeting encounter with their daily struggles. It also brought the incredible scope of Penny Appeal's impact into focus, from water-well projects to transformative Zakat programs." 

## Critical Conversations: Bridging Communication Gaps 

Language barriers were shattered as face-to-face interactions took centre stage. Both trustee boards engaged in fruitful discussions, leading to crucial insights: 

## **The Aftermath: Penny Appeal's Unwavering Response to the Crisis** 

In the wake of the devastating floods, our teams across Pakistan jumped into action. Thousands of meals were distributed, clean drinking water was provided to thousands of families, and other essential relief reached those in dire need. Plans were also put in place for temporary learning centres, medical supplies, and clean drinking water facilities. 

## **Energised for Impact** 

The trustees returned more energised and committed than ever. Armed with invaluable ground truths and fortified by the relationships strengthened, the board is poised to steer Penny Appeal towards new horizons of effectiveness and humanitarian outreach. 

This strategic visit has indelibly marked Penny Appeal's commitment not just to governance but to the very essence of our charitable mission. We look forward to a future of fortified governance, robust operations, and transformative humanitarian impact. 

- The need for stronger communication channels for effective collaboration. 

- Emphasis on local brand awareness and fundraising opportunities. 

- Future focus on sustainability and environmental projects, especially considering worsening flood conditions. 

## Timely Preparedness: A Tragic Precursor to the Devastating Monsoons 

The trustees' focus on monsoon preparedness proved tragically prophetic. Weeks later, Pakistan witnessed one of its worst flooding disasters. More than 33 million people were affected, with massive losses to lives, livestock, and property. 

The Ripple Effect: The Visit's Far-reaching Impacts 

- **£1 Million Milestone:** The strategic visit was a catalyst in raising over £1 million for the Pakistan floods. 

- **Endorsement by HE Mr. Ibrar Hussain Khan:** The Consul General personally appeared on British Muslim TV, amplifying the legitimacy and reach of our operations. 

- **Actionable Recommendations:** The trustee visit concluded with a series of recommendations, promising future advancements in our governance and operational strategies. 


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## OBJECTIVES **& ACTIVITIES** 

## — OUR VISION 

Inspired by the universal values of the Islamic faith, our mission is to serve all those in need at home and abroad. 

## PENNY APPEAL’S VISION 

## — HIGH-LEVEL STRATEGIC OBJECTIVES 

Transform small change into a BIG difference for those who need us most. At the heart of Penny Appeal is our determination to use every penny wisely, spending in cost-effective and efficient ways that ensure lives are transformed though sustainable, meaningful programmes. 

Our life-changing programmes encompass emergency support, short-term relief and long-term community improvements. Further information is included in the Our Campaigns sections. 

Our work is underpinned by the following values: 

**+** Teamwork Makes The Dream Work 

- **+** The Right Thing, The Right Way, With The Right Intentions 

**+** Live The Legacy 

**+** Champion The Underdog 


**+** Do It The Orange Way 

These are designed to remain aligned to evolving challenges, providing focus and purpose to the way in which the Charity operates. 

## — PENNY APPEAL’S OBJECTIVES 

The Charity's objectives include: 

**+** To prevent and/or relieve poverty anywhere in the world through the promotion of education, human rights, social inclusion, and religious harmony for the public benefit. 

**+** To relieve the suffering and financial needs of victims of natural or other kinds of disasters through humanitarian assistance or other means. 

**+** To develop the capacity and skills of socially and economically disadvantaged communities in such a way that they are better able to identify and help meet their needs and participate fully for the betterment of society. 

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PRINCIPLE FUNDING SOURCES
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## FINANCIAL REVIEW PRINCIPLE FUNDING SOURCES 

Through the generosity of our donors in the fiscal year ending on December 31, 2022, the Charity’s total income was £23,086,238. (8 months to December 2021: £16,188,549). 

Our Charity relies exclusively on donations from the public, and the challenging macroeconomic environment is reflected in the revenue achieved. 

Foreseeing these persistent challenges in the near term the Charity takes its responsibility to strong governance and financial prudence seriously. This is reflected in our reserves calculation and demonstrated by our going concern assessment. 

Gift Aid, a pivotal component of our revenue, amounted to £2,190,340, constituting approximately 9.5% of the total income for the year. While this marks a slight decrease from the prior year's 10.2% (year ending 31st December 2021: £1,652,819), Gift Aid remains a vital resource. 

The Charity strategically utilizes these additional funds to cover essential operational and administrative expenses, ensuring that the generous donations from the public have a profound impact, reaching those in need. 

Whilst income from Gift aid has dropped as a proportion of revenue, we continue to ask our donors at every donation made online to apply gift aid to their donations where appropriate. 

During the period, the Charity generated a surplus of a surplus of £1,258,805, a significant turnaround from the deficit of £970,842 reported in the year ending December 31, 2021. 


These surplus funds will be disbursed in subsequent financial periods, aligning with our intended use and reinforcing the financial resilience of the Charity. 

Charitable activities saw an expenditure of £15,273,026 during the 12-month period ending December 31, 2022, compared to £13,115,773 in the previous year’s accounts. The Chairty continues to exert itself in ensuring donors money is maximised in this area. 

Fundraising costs remained consistent with the extrapolated 12-month figure from 2021, amounting to £6,845,407 (year ending 31 December 2021 [8 months]: £4,043,618). 

These activities not only generate immediate income but are viewed as strategic investments, contributing to ongoing and future revenue streams while elevating the Charity's profile. 

We continuously scrutinize and optimize the financial model and cost structure, ensuring the best value for the Charity and our Donors. 

Looking ahead, the Charity will continue strategically invest in enhancing its infrastructure and governance across all facets. These investments have been integrated into our financial budgets and planned to maintain robust reserves. 

This commitment serves as a cornerstone of our strategy to empower the Charity to meet its objectives in an efficient, controlled, and sustainable manner. 

It is a proactive step toward maximizing the impact of our endeavours, ensuring our work resonates with lasting and transformative effects. 

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## CHARITABLE ACTIVITIES 

Total expenditure on charitable activities of £15,273,026 represented 66.1% of total income raised (year ending 31st December 2021: 81.1%). 

Key areas of spend include the following: 


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Total 31 December 2022 £m<br>General 1.9<br>Feeding 4.3<br>Emergency 3.3<br>Orphans 3<br>Water 1.1<br>Community<br>1.7<br>Establishment<br>**----- End of picture text -----**<br>


## INVESTMENT POLICY AND OBJECTIVES 

The majority of the Charity’s funds are spent in the short-term, however the charity has invested in sustainable assets that provide a continuing return. 

These investments are made with the goal of creating a diverse and sustainable income stream that will enable the Chairty to further our objectives. 

A policy will be developed to support longer-term investment as the Charity grows further. 

The objectives of the policy will be to support stability and adherence to both the Charity’s objectives, and all relevant regulations. The policy will include reference to maximising returns from properties. 

In the prior year accounts the investment properties were incorrectly included in tangible assets at historical cost. This was in relation to the two properties Penny Appeal owns which are the following: 

- Bezier Creative Print Works 

- Thornes Park – The Penny Appeal Campus. 

## SUPPORT COSTS 

The Charity’s support costs during the period were £2,041,978 (year ending 31st December 2021: £1,548,402), representing 8.8% (year ending 31st December 2021: 9.5%) of the total income raised during the year. 

We have now split the properties in accordance with the use of these buildings based on an independent survey by Malcolm Stuart. 

The Bezier building and a significant part of Thrones Park is used for investment purposes. Malcolm Stuart are RICS registered valuers based in Wakefield, UK and have extensive experience in the field of property valuation in the local area. 

As at year end 31 December 2022 Penny Appeal investment properties have a carrying value of £3.0m. This valuation has been reflected in note 18 of the accounts. 

Support costs represent the costs of running the operations, of the Charity, and include the costs of functions such as finance, administration, information technology and premises. 

Further details are provided in Note 9. 

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## RESERVES POLICY 

The table below provides a breakdown of our reserves and show’s comparison of its movement from it previous years. 


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31 Dec  30 Apr<br>31 Dec 2022<br>2021 2021<br>£m<br>£m £m<br>General Reserves 7.5 1.0 4.1<br>Restricted 1.1 6.4 4.2<br>**----- End of picture text -----**<br>


The reserves should provide the Charity with adequate financial stability and the means for it to meet its charitable objectives for the foreseeable future. 

The Trustees propose to maintain the Charity’s target reserves at a level which is at least equivalent to 3 months’ operational expenditure – this includes salary costs plus core spend to operate  the Charity. The Trustees consider this as an adequate level to manage the Charity’s risks. 

This currently equates to minimum reserves of £2.8 million which have been maintained throughout the year. This policy forms part of the Trustees assessment of going concern. 

The Trustees diligently review the value of reserves annually, ensuring their sufficiency for the Charity's ongoing commitments. Regular monitoring throughout the financial year is conducted to align with the changing operational landscape. The levels of reserves adhere to an evolving reserves policy. 


## KEY CONTROLS 

## FUNDRAISING 

The Charity is registered with the Fundraising Regulator and has developed procedures to comply with the Code of Fundraising Practice. 

Penny Appeal is also a member of the Institute of Fundraising and fundraising activities are designed to be legal, transparent and honest. Fundraising teams utilise a number of different approaches, which include the following: 

- Major donor giving 

- Community fundraising 

- Live TV appeals 

- • Volunteers 

- Online giving 

- Digital Marketing 

- Corporate and institutional giving 

- Challenges 

- Events 

- Direct mail 

- • Call Centres 

- Social media 

The aforementioned fundraising activities have been conducted in line with our High Level Objectives 2 (Raise and disburse funds ethically and effectively) and 4 (Strengthen the Penny Appeal family and global brand). 

2022 was the year in which all Covid-19 restrictions were lifted, and we anticipated a slow return to social gathering. However our events returned to pre-Covid attendee levels, providing significant and vital funds for our charitable activities. 

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## COMPLAINTS HANDLING 

For instances where the Charity does not meet the high standards it sets itself, a complaints policy is in place. 

A complaint can be submitted either in person, by telephone, email or online via the website contact form. Complaints are dealt with in accordance with the process laid down in the Charity's policy. 

## GOVERNANCE AND CONFLICTS OF INTEREST 

In 2022, a detailed external governance review, conducted by Wrigleys, was received by the Board of Trustees, in order to enhance and improve the Charity’s governance structures and processes. 

The implementation of the governance action plan is ongoing at the end of the reporting period to ensure suitability and adequacy as the Charity continues to evolve. 

The Charity ensures that all actual and perceived conflicts of interest are correctly and properly identified, disclosed and managed to ensure transparency to donors and stakeholders. 

The Trustees have identified all such conflicts and have put in place adequate measures to ensure all conflicts are managed properly and adequately disclosed. 

As noted in previous Trustees’ Reports, the Charity was notified by the Charity Commission in November 2020 that it was opening a Regulatory Compliance Case and had requested information relating to aspects of governance. 


Subsequent to this, the Charity Commission visited Penny Appeal’s offices during the reporting period (November 2022) to conduct an audit of charity records as part of this ongoing governance engagement. The Trustees are of the view that comprehensive replies were provided to the Charity Commission to all the questions raised. Engagement with the Charity Commission continues as part of this process. 

The Trustees are committed to answering all follow-up enquiries fully with openness and transparency in order to effectively demonstrate the improvements made. 

On this basis, there is not considered to be any impact, including any financial impact, to these financial statements arising from this Regulatory Compliance Case during this reporting period. 

Further information relating to the governance structures and processes in place at the Charity is shown in the Structure, Governance and Management section. 

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## SAFEGUARDING 

2022 was a year of consolidation and change given the lifting of Covid-19 restrictions and the additional safeguarding imperatives the return to social mixing necessitated. 

In light of this, during the reporting period, the Safeguarding Directorate worked to embed safeguarding processes, procedures and policies, external reviews, as well as internal assessments had recommended and given rise to. 

These additional processes and procedures included safeguarding training for colleagues based at our headquarters in Wakefield, safeguarding engagement with our international partners and affiliates, as well as departmental meetings established to discuss safeguarding on a regular basis. 

On a strategic level, the Chair of the Board of Trustees is a specialist in the safeguarding field, bringing this expertise to the Board. 

The Safeguarding Committee is a sub-committee of the Board, established to ensure that sufficient focus and oversight is maintained over safeguarding-related matters. 

At an operational level, the Charity employs a Director of Programmes with a specific focus on Safeguarding, who brings extensive sector experience and expertise from work in many areas around the world. 

These enhancements have been implemented to ensure that safeguarding processes and controls are adequate across all areas and countries of the Charity's operations. 

## FUNDRAISING ACTIVITY 

The Charity ensures that all fundraising activities are planned well in advance with clear responsibilities at the outset. 

Locations, staff and volunteers are selected based on suitability of ability and skills. Only reputable contractors and venues are used. 

Where large or high-risk donations are collected, the Charity carries out appropriate due diligence checks to confirm the nature of the donation and the identity of the donor. 

Phone calls to appeals on TV and radio are controlled with adequate delays built in to ensure nuisance or ill-intentioned calls are blocked. 

## GENERAL DATA PROTECTION REGULATION (GDPR) 

The Charity provides GDPR training to all staff. 

A GDPR action plan is implemented and monitored for compliance. A Data Protection policy and privacy statements are in place. 

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## NON-COMPLIANCE TO COUNTER TERRORISM LEGISLATION 

The Charity does not permit nor condone any form of Terrorism or Facilitation of Terrorism, either through the activities of the Charity itself or through its international offices, donors, partners or associates. 

The Programme Risk Management Framework is applied to delivery partners to manage risks associated with programme delivery and non-compliance to counter terrorism legislation. 

This Framework is used to ensure all grants are used for donor intended purposes. The Charity has strict vetting processes in place for all employees, contractors, suppliers and delivery partners to ensure they are not on UK Government endorsed proscribed lists. 

The Programmes department conducts due diligence on all partners before they are engaged. The Charity conducts ongoing monitoring of projects through feedback reports and office visits and monitoring. This is to ensure the risks of non-compliance to counter terrorism legislation are minimised. 

## MAJOR RISKS AND MANAGEMENT OF THOSE RISKS 

The Charity maintains a risk register that captures key corporate risks and drives action plans to mitigate these risks. 

The CEO leads this process working together with the executive management team. The key inherent risks identified are listed below. 

This is an assessment of the main risks associated with the nature of operations that the Charity is involved with, for which processes and controls are implemented and monitored to ensure that risks are mitigated to an acceptable level: 

- Safeguarding and child protection. Further details are included in the Safeguarding section above 

- Breaches of regulatory requirements or policy 

- Risk to donation levels resulting from economic or other events, including impact of the pandemic 

- Data protection and payment risksPolitical instability in programme areas 

- Operational complexity and IT capability 

- Staff skills and development 

Management ensure that controls are designed and implemented to address the identified risks. 

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## THE TRUSTEES 


## MOHAMMED 

## JAHANGIR KHAN 

Jahangir is a distinguished Child Safeguarding specialist and business change practitioner who serves as Chair of the Penny Appeal Board of Trustees. 

He is also Chair of the Safeguarding Committee. In both roles, Jahangir ensures that the Charity adopts best practice in respect of child welfare and well-being in all of its work across the UK and around the world. 

Jahangir works as a lead practitioner specialist for children and young people at Wakefield Council and has over 33 years’ experience within education and young people services. 


## ADEEM YOUNIS 

## Founder and Trustee 

Adeem is a multi-award-winning entrepreneur, community leader and philanthropist hailing from inner city Wakefield. 

His inspired vision and tremendous hard work have helped build the industry-leading matchmaking platform, SingleMuslim.com, which has resulted in over 100,000 success stories and was hailed as the largest Muslim-run website globally. 

Building on this success, in 2009 he founded Penny Appeal, and under his stewardship the Charity expanded to serve the poor and vulnerable in over 60 countries, raising over £100 million in its first decade. 

Adeem continues to play a vital role as Trustee of the Charity, and currently chairs the Digital, Marketing & Communications Committee providing strong strategic oversight in respect of the Charity’s income generating departments, ensuring that Penny Appeal can continue to reach communities in need worldwide. 


## SAEEDA AMIN 

## Trustee 

Saeeda is the Chief Transformation Officer at Fox's Burton's Companies (FBC)UK. She has over 20  years’ experience holding senior executive roles, she is a Chartered Accountant with a background as a CFO, Corporate Finance lead and Transformation leader. 

Her skills have been gained through delivering turnarounds, business integrations, mergers & acquisitions, supporting operational and commercial rationalisation and building empowered and engaged teams. Saeeda has a strong strategy and change management focus ensuring delivery of results for all stakeholders. She is a passionate advocate for DE&I inside and outside of the company's walls and committed to building inclusive environments. 

She is highly motivated and enthusiastic and brings with her an impeccable reputation for providing insightful, direct and honest feedback as well as an incredible array of experiences, advice insights and industry know how, including skills that assist in improving governance, risk management and business transformation. 


## UMER SHERAZ 

## Trustee 

## Chair of Finance, Audit & Risk Committee 

Umer is a business transformation leader who has worked across a range of sectors, including private and public agencies. 

He specialises in digital transformation, change management and sustainable growth. 

He brings to Penny Appeal over 20 years of strategic oversight, ensuring that organisations are able to effectively execute their strategy by putting people and process at the heart of progress. 

Umer also has experience in finance and governance, contributing valuable advice and guidance with regards to Penny Appeal's audit and risk procedures, ultimately ensuring that the Charity's systems and processes are effective and robust in order to provide the maximum support to the vulnerable communities Penny Appeal exists to serve. 

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## THE TRUSTEES 


## GILL LAIDLER 

## Trustee 

Gill Laidler is a leading figure in the worlds of marketing, communications, and journalism. A member of the National Union of Journalists, she has over 35 years of industry experience working with a range of local, national and international businesses. 

Most notably as Group Editor & Founder of Topic UK B2B Magazine and Yorkshire Businesswoman magazine under which Gill recently launched the Yorkshire Business Woman Networking group. 

The group brings together a wealth of knowledge and skills to create a network of business services, meeting on a monthly basis. 

She also has a breadth of experience within the charity sector having held several senior management positions in local and national charities, as well as contributing her skills and expertise as a Trustee for charities addressing a range of issues. 


## MAGGIE STEPHENSON 

## Trustee 

Maggie has worked in housing, rural and urban planning and built environment education for over 30 years in South Asia, Africa and Europe. 

She has been involved in crisis response and recovery in both natural disaster and conflict situations, and in long term development, through policy and institutional support and in direct programme implementation. 

She has experience of working with grassroots community organisations, NGOs, the UN, European Union and World Bank as well as with local and national governments. 

## STRUCTURE, GOVERNANCE AND MANAGEMENT 

## Directors/Trustees: 

Mr Mohammed Jahangir Mr Adeem Younis Mr Umer Sheraz Ms Saeeda Amin Ms Gill Laidler Ms Maggie Stephenson (appointed 10.04.23) Mr Nasir Akram (appointed 04.06.21, resigned 05.10.23) 

## CEO: 

Mrs Ridwana Wallace-Laher 

## Registered Office: 

Penny Appeal Campus Thornes Park, Wakefield, West Yorkshire, WF2 8QZ 

## Charity Registration Number: 

1128341 SCO49025 

## Auditors 

Armstrong Watson Audit Limited Thornfield Business Park Northallerton, DL6 2XQ 

## Legal Advisors 

Wrigleys Solicitors LLP 19 Cookridge Street Leeds, LS2 3AG 

## Bank: 

Unity Trust Bank Plc Four Brindley Place Birmingham, B1 2JB 

## Company Registration Number: 

06578382 

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## THE BOARD OF TRUSTEES 

The Board of Trustees is made up of volunteers, who each bring relevant skills and practical experience with them to help the Charity meet its objectives. 

The Board is ultimately responsible for the operations of the Charity. 

The Trustees set the strategy and agenda for the Charity and drive good practice, with a real focus in this financial period on governance. The Board works with the CEO to monitor and ensure that the Charity is working towards achieving its objectives and operates in line with agreed strategy and plans. 

## BOARD COMMITTEES 

In order to ensure the required level of focus and expertise on specialist matters, the Board of Trustees has established the following Board sub-committees: 

- Safeguarding Committee 

- Finance, Audit & Risk Committee 

Each committee is chaired by a Trustee and comprises membership of those Trustees with specialist subject matter expertise and are attended by senior members of management from the respective areas of focus. 

The committees meet at least once every two months, or as otherwise required, and report work and recommendations to the Board. 

## INDUCTION & TRAINING FOR TRUSTEES 

The Charity provides support and development to its Trustees, so that they can understand their roles and responsibilities fully. 

This includes giving new Trustees an overview of the Charity's strategic and operational objectives, as well as a comprehensive welcome pack which includes a copy of the governing document, minutes of previous Board meetings and Charity Commission guidance. 

They also receive inductions to the Charity from executive management, in which they are given policies, reports and plans for upcoming campaigns, projects or events. All Trustees are required to read and sign a Trustees Code of Conduct, which details the standards of performance and behaviour expected of them. This all combines to create a functional Board of Trustees, which can add value to the Charity through each of the individual Trustee's wide range of skills, expertise, and knowledge. 

## TRUSTEE APPOINTMENT 

All nominations of potential new appointments are reviewed by the existing Board of Trustees. 

Trustees are selected because they have the required range of skills, knowledge and experiences that is required to oversee and direct the Charity, complementing the skills and experience of other members of the Board. Our most recent trustee recruitment was facilitated by an external appointments agency, Oxford HR. 

Oxford HR established the skills metrics, lead on the drafting of the role appointment descriptions, advertised the roles and conducted the shortlisting process as well as supporting the existing trustees in the facilitation of the subsequent interviews to ensure the best people with the appropriate skills were appointed to support the charity in the fulfilment of its objectives. 

Furthermore, during this reporting period, in line with Penny Appeal‘s commitment to the highest standard of governance, our Board Of Trustees and Senior Leadership Team participated in an externally lead skills audit to identify any gaps that may exist which need to be filled to support the charity in particular areas of its work. 

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## REPORTING 

## The CEO reports directly to the Board of Trustees and is responsible for managing the day-to-day operations of the Charity. 

The CEO sets individual objectives for the executive management team and assesses their performance against these set objectives. The executive management team also meets on a weekly basis to discuss and agree key operational actions required. During the year, the  executive management team was strengthened through the recruitment of further team members to provide additional skills and capacity. 

## GRANT MAKING POLICY 

## 2022 was a time of strategic alignment for our Programmes department. 

During the process we sought to align our strategic organisational priorities with the increasing need that a post-Covid world presents for charities to address. This included the formation and implementation of annualised budgets and forward planning to both promote long-term sustainability and to increase our emergency preparedness for when crisis strikes. 

Post-Covid and along with the charity sector as a whole, in implementing our programmes and partner strategy, we had to contend with a limited financial outlay, leading to a greater focus on programme consolidation and high impact within the countries and communities we support. 

Subsequently, this led to a large-scale review of our partners grounded within the principles and minimum-standard requirements as identified below, and in accordance with our HLOs 1 and 3, to pursue the delivery of high quality programmes and to invest in the development of our people and infrastructure. 


Furthermore, this process has supported the Charity in assisting towards the fulfilment of our five-year strategic objective to become the best-in-casas Muslim charity and aligns with our mission to help those who need us most. 

Partners are selected based on a due diligence exercise that confirms consistency of values with Penny Appeal and the ability to deliver projects. 

Grant proposals are received and appraised by the Penny Appeal Programmes team. A funding agreement is drawn up for all grants made. 

## Partnership Policy and Principles: 

- We must both add value. Each partner brings different experiences, capacities and resources which all add value. Roles and contributions need to be made clear to ensure trust and deeper commitments can be made. This includes being open about limitations. 

- We must respect each other. We recognise and celebrate differences in values and beliefs. In order to form strong partnerships, we must seek enough common ground to ensure both organisations’ objectives are fulfilled. It is crucial that this common ground includes a commitment to gender equality and respect for diverse identities. 

   - We must understand our roles. It’s essential that partner relationships are based on a clear understanding of the expected contribution of each party. A commitment to fulfilling roles will allow both organisations to share in success as well as learn together. 

- 

- We answer to the communities we serve. Ultimately accountability is to the communities we serve – those experiencing poverty or affected by disasters. But we are also accountable to other stakeholders including donors and governments. Across this spectrum of stakeholders, we must remain open to scrutiny and be ready to share information. Good financial management is essential and involves a high level of trust and shared knowledge. 

- We are both committed. We have a commitment to building long-term partnerships. We recognise that this might involve capacity-building and multi-year funding. We will always try to listen to partners, so that changing circumstances and new strategic directions are carefully considered. 

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## GRANT MAKING POLICY 

## Minimum Partnership Requirements: 

- **Strategic fit – should we work together?** 

Penny Appeal is committed to developing effective partnerships across a wide range of contexts and countries. In all situations the organisation will ensure that any Potential Partner is a good ‘strategic fit’ and whether its culture and values align. 

Penny Appeal also assesses its own skills and experience to ensure that it has the necessary capacity to work with and support any Potential Partner. Penny Appeal is committed to establishing equitable and accountable partnerships and will ensure that any Partner is aware of how both sides will hold themselves to account, most importantly to the communities we serve. Any Potential Partner would also need to demonstrate relevant compliance with financial, protection, statutory and legal standards. 

- **Assessing capacity – do we both have the capacity to deliver?** 

## GOVERNING DOCUMENT 

Penny Appeal is a charitable company limited by guarantee which was incorporated on 26 January 2009 and registered as a charity on 2 March 2009. 

The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. 

In the event of the company being wound up members are required to contribute an amount not exceeding £10. 

## REMUNERATION POLICY FOR KEY MANAGEMENT PERSONNEL 

We both commit to assessing our capacity as part of the Partner Appraisal Process. This assessment will be completed for every Potential Partner. 

## **• Partner Conversation – our roles and responsibilities** 

If a Potential Partner successfully completes a Partner Appraisal Process, we will not immediately prepare a Memorandum of Understanding (MoU). A good Partnership Conversation is simply a way of creating space and time to discuss these responsibilities and agreements so that we can agree and revisit them together and remind each other of them. 

If Penny Appeal staff and Potential Partners have a clear understanding of what the partnership is for and what are responsibilities are, we can develop relationships based on trust and accountability. 

## **• Memorandum of Understanding (MoU)** 

Penny Appeal aims to employ the right people for the right job and therefore a conscious effort is made to employ highly experienced staff in key management positions who can build the capacity and capability of the overall organisation. 

Penny Appeal considers this necessary to ensure that its resources are maximised and that every penny spent on beneficiaries goes far in addressing their needs. 

The management team was significantly strengthened through recruitment during the reporting period. The remuneration of key management personnel is approved by the Trustees and is benchmarked against the industry norms and prevailing standards. 

All Approved Partners will be invited to sign an MoU that establishes the broad partnership arrangements. 

The Charity works closely with its partners helping them develop their capacity so that they are effective in achieving Penny Appeal's grant objectives. 

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## ORGANISATIONAL STRUCTURE 

## The reporting period was one of ongoing consolidation and improvement for the Charity. 

New governance and operating structures were implemented, in light of the completion of the External Governance Review by Wrigleys. Work to further improve governance and effectiveness was ongoing at the end of the period, as per the Governance Action Plan. The Trustees meet regularly to consider the activities of the Charity and approve its overall direction. The financial period coincided in part with the lifting of restrictions imposed due to the Covid-19 pandemic, and the opening of our new headquarters at Thornes Park in Wakefield. 

This new campus provides staff with a setting to support the advancement of their work and provides benefit to the local community through local charitable projects and partnerships. This return to the office after a long period of working from home necessitated by the pandemic did present challenges addressed by all departments creating a departmental charter to identify the best working arrangements for their respective area going forward. 

## RELATED PARTIES 

Procedures are in place to fully identify and disclose related parties. For further details refer to the Financial Statements. 

## STAFF 

The Charity recognises the importance of its staff and their welfare. 

Plans are in place to identify and meet staff training and development needs. An employee welfare and counselling service is available to all staff. Additional work has commenced, and is ongoing, to review all aspects of culture and engagement, to ensure that staff wellbeing is fully considered, and that appropriate support is in place for all aspects of employees’ professional performance and development. 

## TRUSTEES RESPONSIBILITIES 

The Trustees (who are also directors of Penny Appeal for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the Trustees to prepare financial statements for each financial period. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. 

## In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies and apply them consistently; 

- • observe the methods and principles in the Charities SORP; 

- make judgments and estimates that are reasonable and prudent; 

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

- prepare the accounts on a going concern basis unless it is 

- inappropriate to presume that the charity will continue in business. 

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the accounts comply with the Companies Act 2006. 

They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The Report for the period, the Strategic Report and the Trustees’ Report (including the Chair of Trustees' Statement) are approved by the Trustees of the Charity on 31 October 2023 and signed on its behalf by: 

## **Mohammed Jahangirt** 

Chair of the Board of Trustees 

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## INDEPENDENT AUDITOR'S REPORT 

## Opinion 

We have audited the financial statements of Penny Appeal (the ‘charitable company’) year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the Company's affairs as at 31 December 2022 and of its profit for the year then ended; 

- • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. 

## Basis for Opinion 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. 

We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## Conclusions relating to going concern 

In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report. 

## Other information 

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. 

If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## Opinion on other matters prescribed by the Companies Act 2006 

- In our opinion, based on the work undertaken in the course of the audit: 

- the information given in the Strategic Report and Trustees’ Report, which includes the Directors’ Report, prepared for the purposes of company law for the financial period for which the financial statements are prepared is consistent with the financial statements; and 

- the Strategic Report, and the Directors’ Report included within the Trustees’ Report have been prepared in accordance with applicable legal requirements. 

## Matters on which we are required to report by exception 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report included within the Trustees Report. 

Based on the work we have performed; we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

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85 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees' remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit; or 

## Responsibilities of Trustees 

As explained more fully in the Trustees’ Responsibilities Statement set out on page 81, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. 

## Auditor's responsibilities for the audit of the financial statements 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

The extent to which the audit was considered capable of detecting irregularities including fraud 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, was as follows: 

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities, and skills to identify or recognise non-compliance with applicable laws and regulations. This included at the planning stage of the audit review available communication with the charity commission on their concerns under investigation at that date to identify and actual noncompliance. 

- we identified the laws and regulations applicable to the charity through discussions with trustees and other management, and from our commercial knowledge and experience of the sector; 

- we assessed the extent of compliance with the laws and regulations identified as key to the entity through making enquiries of management and inspecting legal correspondence; and 

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of noncompliance throughout the audit. 

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 

- making enquiries of management as to where they considered there was susceptibility to fraud, their  knowledge of actual, suspected and alleged fraud. 

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.  We have identified control observations over cost authorisation process and have reported these back to those charged with governance; and 

- reviewing the key areas of the financial statements most susceptible to fraud whilst tailoring our audit plans. 

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To address the risk of fraud through management bias and override of controls, we: 

- performed analytical procedures to identify any unusual or unexpected relationships; 

- tested journal entries to identify unusual transactions; 

- assessed whether judgements and assumptions made in determining the accounting estimates, such as the investment property valuations were indicative of potential bias; 

- investigated the rationale behind significant or unusual transactions; and 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 

- agreeing financial statement disclosures to underlying supporting documentation. This included comparing disclosures made over the charity commission’s findings to available public information from the charity commission. 

- reading the minutes of meetings of those charged with governance. This included obtaining copies of responses made by the trustees to the charity commission in response to their enquiries. 

- enquiring of management as to actual and potential litigation and claims.  This included obtaining a specific representation in response to management’s response to concerns raised by the charity commission and a review of correspondence provided to us by the trustee’s demonstrating their response to the charity commission’s review of the charity. 

- reviewing correspondence with the funding bodies and the charity’s legal advisors.  This included a conference call with the charity’s legal advisors to obtain direct information on the progress of discussions with the charity commission. 

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non- compliance with laws and regulations and cannot be expected to detect all fraud and noncompliance with laws and regulations. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report. 

## Use of our report 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. 


Simon Turner (Senior Statutory Auditor) 

for and on behalf of Armstrong Watson Audit Limited Chartered Accountants & Statutory Auditors Northallerton Date: 31 October 2023 

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## STATEMENT OF FINANCIAL ACTIVITIES 

## For the Year Ended 31 December 2022 

(Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) 


**----- Start of picture text -----**<br>
TOTAL<br>UNRESTRICTED  RESTRICTED<br>NOTE 31 DECEMBER<br>FUNDS £ FUNDS £<br>2022 £<br>Income and Endowments from:<br>Donations and legacies 3 8,010,937 14,814,336 22,825,273<br>Investment income 5 12,282 - 12,282<br>Other income 6 248,683 - 248,683<br>Total income 8,271,902 14,814,336 23,086,238<br>Expenditure on:<br>Raising funds 7 (1,960,349) (4,885,058) (6,845,407)<br>Charitable activities 8 (1,943,341) (13,329,685) (15,273,026)<br>Total expenditure (3,903,690) (18,214,743) (22,118,433)<br>Gains/losses on  291,000 - 291,000<br>investment assets<br>Net income/(expenditure) 4,659,212 (3,400,407) 1,258,805<br>Transfers between funds (3,339,655) 3,339,655 -<br>Net movement in funds 1,319,557 (60,752) 1,258,805<br>Reconciliation of funds<br>Total funds brought forward 6,224,635 1,189,589 7,414,224<br>Total funds carried forward 25 7,544,192 1,128,837 8,673,029<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
TOTAL<br>UNRESTRICTED  RESTRICTED<br>NOTE 31 DECEMBER<br>FUNDS £ FUNDS £<br>2021 £<br>Income and Endowments from:<br>Donations and legacies 3 2,564,670 13,451,794 16,016,464<br>Investment income 5 19,070 - 19,070<br>Other income 6 153,015 - 153,015<br>Total income 2,736,755 13,451,794 16,188,549<br>Expenditure on:<br>Raising funds 7 (1,105,991) (2,937,627) (4,043,618)<br>Charitable activities 8 (2,624,832) (10,490,941) (13,115,773)<br>Total expenditure (3,730,823) (13,428,568) (17,159,391)<br>Net (expenditure)/income (994,068) 23,226 (970,842)<br>Transfers between funds (2,164,133) 2,164,133 -<br>Net movement in funds (3,158,201) 2,187,359 (970,842)<br>Reconciliation of funds<br>Total funds brought forward 4,150,174 4,234,892 8,385,066<br>Total funds carried forward 25 991,973 6,422,251 7,414,224<br>**----- End of picture text -----**<br>


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Balance Sheet as at 31 December 2022 

## STATEMENT OF CASH FLOWS 


**----- Start of picture text -----**<br>
31 DECEMBER 8 MONTHS TO<br>NOTE<br>2022 £  31 DECEMBER 2021 £<br>Fixed assets<br>Intangible assets 16 174,542 46,802<br>Tangible assets 17 1,554,229 3,219,256<br>Investments 18 3,000,000 -<br>4,728,771 3,266,058<br>Current assets<br>Debtors 19 677,402 369,510<br>Cash at bank and in hand 20 4,333,541 4,472,186<br>5,010,943 4,841,696<br>Creditors: Amounts falling  21 (1,066,685) (555,815)<br>due within one year<br>Net current assets 3,944,258 4,285,881<br>Total assets less<br>0 8,673,029 7,551,939<br>current liabilities<br>Creditors: Amounts falling  22 - (137,715)<br>due after more than one year<br>Net assets 8,673,029 7,414,224<br>Funds of the charity:<br>Restricted income funds<br>Restricted funds 1,128,837 6,422,251<br>Unrestricted income funds<br>Unrestricted funds 7,544,192 991,973<br>Total funds 25 8,673,029 7,414,224<br>**----- End of picture text -----**<br>


The financial statements on pages 90 to 113 were approved by the trustees and authorised for issue on 31 October 2023 and signed on their behalf by: 

## **Mohammed Jahangir** 

Chair of the Board of Trustees 

## Flows for the Year Ended 31 December 2022 


**----- Start of picture text -----**<br>
NOTE 31 DECEMBER 8 MONTHS TO<br>2022 £  31 DECEMBER 2021 £<br>Cash flows from operating activities<br>Net cash income/(expenditure) 1,258,805 (970,842)<br>Adjustments to cash flows<br>from non-cash items<br>Depreciation 17 300,924 157,454<br>Amortisation 16 210,439 10,800<br>Investment income 5 (12,282) (19,070)<br>Revaluation of Investment properties (291,000) -<br>1,466,886 (821,658)<br>Working capital adjustments<br>Increase in debtors 19 (307,892) 47,105<br>Increase in creditors 21 510,870 (438,835)<br>Net cash flows from  1,669,864 (1,213,388)<br>operating activities<br>Cash flows from investing activities<br>Purchase of intangible<br>fixed assets 16 (338,179) (10,079)<br>Purchase of tangible fixed assets 17 (598,194) (968,325)<br>Increase of Investment Property 18 (746,703) -<br>Net cash flows from  (1,683,076) (978,404)<br>investing activities<br>Cash flows from financing activities<br>Interest receivable and<br>5 12,282 19,070<br>similar income<br>Repayment of loans  22 (137,715)<br>and borrowings<br>Net increase/(decrease) in<br>(138,645) (2,172,722)<br>cash and cash equivalents<br>Cash and cash equivalents<br>4,472,186 6,644,908<br>at 1 January<br>Cash and cash equivalents<br>4,333,541 4,472,186<br>at 31 December<br>**----- End of picture text -----**<br>


All of the cash flows are derived from continuing operations during the above two periods. 

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## NOTES TO THE FINANCIAL STATEMENTS 

## For the Year Ended 31 December 2022 

## 1. Charity status 

The charity is limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation. 

The address of its registered office is: Victoria Chambers 40 Wood Street Wakefield WF1 2HB 

## 2. Accounting policies 

## **Summary of significant accounting policies and key accounting estimates** 

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 

## **Statement of compliance** 

The financial statements have been prepared in accordance with 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 2016) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

They also comply with the Companies Act 2006 and Charities Act 2011. 

## **Basis of preparation** 

Penny Appeal meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. 


## **Going concern** 

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity. 

To support the going concern assessment, the Charity conducted a series of stress tests on its income and expenditure to evaluate the impact of a reduction in income and/or the increase in expenditure. 

The tests were conducted over multiple financial years as it is expected any change will have ramifications on future years programme expenditure. The stress tests all concluded successfully and formed part of the basis of the going concern opinion. 

## **Income and endowments** 

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably. 

## **Donations and legacies** 

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. 

In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. 

## **Investment income** 

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. 

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## NOTES TO THE FINANCIAL STATEMENTS 

## For the Year Ended 31 December 2022 

## **Expenditure** 

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. 

All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. 

Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. 

## **Support costs** 

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. 

## **Governance costs** 

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’ meetings and reimbursed expenses. 

## **Taxation** 

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. 

Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 

Other support costs are allocated based on the spread of staff costs. 

## **Intangible assets** 

## **Raising funds** 

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds. 

## **Charitable activities** 

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. 

Intangible assets are stated in the Balance Sheet at cost less accumulated amortisation and impairment. They are amortised on a straight line basis over their estimated useful lives. 

## **Tangible fixed assets** 

Individual fixed assets costing £1,000 or more are initially recorded at cost. 

## **Amortisation** 

It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. 

## **Grant provisions** 

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable. 

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows: 

Asset class Website development 

Amortisation method and rate Over a period of 3 years 

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## NOTES TO THE FINANCIAL STATEMENTS 

## For the Year Ended 31 December 2022 

## **Depreciation and amortisation** 

The building purchased during the year is not use therefore not depreciated. 

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows: 

Asset class Amortisation method and rate Fixtures and fittings 15% reducing balance Computer equipment Over 3 years 

## **Research and development** 

Research and development expenditure is written off as incurred, except that development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be regarded as assured. Any expenditure carried forward is amortised in line with the expected future income from the related project. 

## **Investment properties** 

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss. 

## **Trade debtors** 

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. 

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. 

## **Cash and cash equivalents** 

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. 

## **Trade creditors** 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. 

If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. 

## **Borrowings** 

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. 

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. 

## **Foreign exchange** 

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date. 

The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. 

Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate). 

## **Fund structure** 

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity. 

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. 

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100 

101 

## NOTES TO THE FINANCIAL STATEMENTS 

## For the Year Ended 31 December 2022 

## 3. Income from donations and legacies 


**----- Start of picture text -----**<br>
TOTAL TOTAL<br>UNRESTRICTED  RESTRICTED<br>31 DECEMBER  8 MONTHS TO:<br>FUNDS FUNDS<br>2022 31 DECEMBER<br>GENERAL  £  £<br>£  2021 £<br>Donations and legacies;<br>Donations to major appeals 5,820,597 14,814,336 20,634,933 14,363,645<br>Gift aid reclaimed 2,190,340 - 2,190,340 1,652,819<br>8,010,937 14,814,336 22,825,273 16,016,464<br>**----- End of picture text -----**<br>


## 5. Investment income 


**----- Start of picture text -----**<br>
UNRESTRICTED  TOTAL TOTAL<br>FUNDS 31 DECEMBER 2022 8 MONTHS TO:<br>GENERAL  £  £ 31 DECEMBER 2021 £<br>Interest receivable and<br>similar income; - - -<br>Interest receivable and<br>12,282 12,282 19,070<br>similar income;<br>**----- End of picture text -----**<br>


## 6. Other income 


**----- Start of picture text -----**<br>
TOTAL<br>UNRESTRICTED  TOTAL<br>1 MAY 2021 TO<br>FUNDS 31 DECEMBER<br>31 DECEMBER<br>GENERAL  £  2022 £<br>2021 £<br>Rental Income 124,360 124,360 11,795<br>Event ticket sales 124,323 124,323 153,015<br>248,683 248,683 164,810<br>**----- End of picture text -----**<br>


## 4. Income from charitable activities 


**----- Start of picture text -----**<br>
TOTAL TOTAL<br>UNRESTRICTED  RESTRICTED<br>31 DECEMBER  8 MONTHS TO:<br>FUNDS FUNDS<br>2022 31 DECEMBER<br>GENERAL  £  £<br>£  2021 £<br>General 8,010,937 - 8,010,937 2,717,685<br>Feeding - 2,686,698 2,686,698 3,265,754<br>Emergency - 3,035,259 3,035,259 1,728,030<br>Orphans - 5,451,755 5,451,755 3,617,986<br>Education - - - 154,374<br>Water - 2,233,630 2,233,630 1,856,138<br>Restricted General - - - 2,040,557<br>Medical - 92,332 92,332 147,153<br>Community Establishment - 1,314,662 1,314,662 641,802<br>8,010,937 14,814,336 22,825,273 16,169,479<br>**----- End of picture text -----**<br>


## 7. Expenditure on raising funds 


**----- Start of picture text -----**<br>
TOTAL TOTAL<br>DIRECT SUPPORT 31 DECEMBER  1 MAY 2021 TO<br>£ £ 2022 31 DECEMBER<br>£ 2021 £<br>Events 622,306 34,808 657,114 343,920<br>Publicity 971,311 54,330 1,025,641 441,833<br>Fundraising 4,889,178 273,474 5,162,652 3,257,865<br>6,482,795 362,612 6,845,407 4,043,618<br>**----- End of picture text -----**<br>


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103 

102 

## NOTES TO THE FINANCIAL STATEMENTS 

## For the Year Ended 31 December 2022 

## 8. Expenditure on charitable activities 


**----- Start of picture text -----**<br>
TOTAL<br>ACTIVITY  GRANT  ACTIVITY TOTAL<br>1 MAY 2021 TO<br>UNDERTAKEN  FUNDING OF  SUPPORT  31 DECEMBER<br>31 DECEMBER<br>DIRECTLY ACTIVITY COSTS 2022<br>2021<br>£  £ £ £<br>£<br>General 882,330 402,767 658,244 1,943,341 2,624,832<br>Feeding 1,972,532 1,979,185 327,836 4,279,553 2,803,085<br>Emergency 1,519,758 1,524,882 252,584 3,297,224 1,487,666<br>Orphans 1,364,276 1,368,876 226,743 2,959,895 3,096,417<br>Education - - - - 60,722<br>Water 518,198 519,945 86,125 1,124,268 1,930,025<br>Medical - - - - 174,524<br>Community<br>769,159 771,752 127,834 1,668,745 938,502<br>Establishment<br>7,026,253 6,567,407 1,679,366 15,273,026 13,115,773<br>**----- End of picture text -----**<br>


In addition to the expenditure analysed above, there are also governance costs of £482,978 (2021 - £225,130) which relate directly to charitable activities. See note 9 for further details. 

## **Support costs allocated to raising funds** 


**----- Start of picture text -----**<br>
TOTAL<br>PREMISES COSTS<br>FINANCE  INFORMATION  ADMINISTRATION  8 MONTHS TO:<br>INCLUDING<br>COSTS TECHNOLOGY COSTS 31 DECEMBER<br>DEPRECIATION<br>£ £ £ 2022<br>£<br>£<br>General 272,489 7,503 41,000 337,252 658,244<br>Feeding 4,987 36,868 110,440 175,541 327,836<br>Emergency 3,841 28,406 85,090 135,247 252,584<br>Orphans 3,448 25,499 76,385 121,410 226,742<br>Water 1,310 9,686 29,014 46,116 86,126<br>Community<br>1,944 14,376 43,065 68,449 127,834<br>Establishment<br>288,019 122,338 384,994 884,015 1,679,366<br>**----- End of picture text -----**<br>


## **Governance costs** 


**----- Start of picture text -----**<br>
TOTAL<br>UNRESTRICTED  TOTAL<br>8 MONTHS TO:<br>FUNDS 31 DECEMBER<br>31 DECEMBER 2021<br>GENERAL  £  2022 £<br>£<br>Audit of the financial  45,000 45,000 35,000<br>statements<br>Legal and professional fees 437,978 437,978 190,130<br>482,978 482,978 225,130<br>**----- End of picture text -----**<br>


## 9. Analysis of governance and support costs 

## **Support costs allocated to raising funds** 


**----- Start of picture text -----**<br>
TOTAL<br>PREMISES COSTS<br>FINANCE  INFORMATION  ADMINISTRATION  8 MONTHS TO:<br>INCLUDING<br>COSTS TECHNOLOGY COSTS 31 DECEMBER<br>DEPRECIATION<br>£ £ £ 2022<br>£<br>£<br>Fund Raising 18,483 40,779 109,188 194,162 362,612<br>**----- End of picture text -----**<br>


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104 

105 

## NOTES TO THE FINANCIAL STATEMENTS 

## For the Year Ended 31 December 2022 

## 10. Grant-making 

## **Analysis of grants** 


**----- Start of picture text -----**<br>
GRANTS TO INSTITUTIONS<br>TOTAL TOTAL 1 MAY 2021 TO<br>31 DECEMBER 2022 £ 31 DECEMBER 2021 £<br>Analysis<br>Sawaed Association for Relief and Development 920,000 -<br>Penny Appeal Pakistan 788,530 1,447,644<br>United Purpose 751,385 760,344<br>ILM 749,179 957,166<br>Muslim Charity 587,037 -<br>Others each less than £50k 574,419 789,411<br>ACRE Uganda 444,469 129,051<br>Mandwi 257,530 87,934<br>Organisation for Research and<br>231,302 175,244<br>Community Development<br>Medical Aid for Palestinians (MAP) 194,080 312,603<br>African Development Trust (ADT) 182,788 67,856<br>Rural Aid Pakistan 139,900 243,002<br>Shushilan 115,370 198,379<br>HELP (Health, Education and Literacy<br>89,430 163,061<br>Programme)<br>Nabd Development and Evolution Organisation 83,000 53,627<br>Responsiveness for Relief and Development 81,389 80,873<br>Al Makassed Islamic Charitable Hospital 80,361 51,905<br>Action for Humanity 63,575 -<br>Solution Focused Education Limited 60,000 -<br>Haji Superstore 59,613 100,354<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Welfare Association - Taawon 57,500 -<br>Tamer Institute for Community Education 56,550 -<br>Alliance with Communities for Rural  - 451,695<br>Engagement<br>Palestinian Farmers Union - 238,955<br>International Social Service - 114,813<br>Penny Appeal Canada - 99,223<br>Rural Development Centre (RDC) Nepal - 89,250<br>Moroccan Children's Trust - 81,854<br>Action Aid London - 77,537<br>Sheba Manab Kallyan Kendra (SMKK) - 72,000<br>Afghanistan and Central Asian Association - 63,671<br>Penny Appeal South Africa - 61,290<br>Mother HELP Age - 56,211<br>6,567,407 7,024,953<br>**----- End of picture text -----**<br>


The support costs associated with grant-making are £Nil (31 December 2021 - £Nil). 

## 11. Net incoming/outgoing resources 

Net incoming/(outgoing) resources for the year include: 


**----- Start of picture text -----**<br>
31 DECEMBER  8 MONTHS TO:<br>2022 £  31 DECEMBER 2021 £<br>Depreciation of fixed assets 300,924 157,454<br>Amortisation of goodwill 210,439 10,800<br>**----- End of picture text -----**<br>


## 12. Trustees remuneration and expenses 

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year. 

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107 

## NOTES TO THE FINANCIAL STATEMENTS 

## For the Year Ended 31 December 2022 

## 13. Staff costs 

The aggregate payroll costs were as follows: 


**----- Start of picture text -----**<br>
31 DECEMBER 8 MONTHS TO:<br>2022 £  31 DECEMBER 2021 £<br>Staff costs during the year were:<br>Wages and salaries 3,675,962 2,439,563<br>Social security costs 470,830 222,427<br>Pension costs 60,162 41,393<br>4,206,954 2,703,383<br>**----- End of picture text -----**<br>


## 14. Auditors' remuneration 


**----- Start of picture text -----**<br>
31 DECEMBER 31 DECEMBER<br>2022 £  2021 £<br>Audit of the financial statements 45,000 35,000<br>**----- End of picture text -----**<br>


## 15. Taxation 

The Charity is a registered charity and has not exceed the maximum threshold for trading activities that would result in any UK corporation tax liabilities. 

## 16. Intangible fixed assets 


**----- Start of picture text -----**<br>
RESEARCH AND  TOTAL<br>DEVELOPMENT £ £<br>Cost<br>At 1 January 2022 248,910 248,910<br>Additions 338,179 338,179<br>At 31 December 2022 587,089 587,089<br>Amortisation<br>At 1 January 2022 202,108 202,108<br>Charge for the year 210,439 210,439<br>At 31 December 2022 412,547 412,547<br>Net book value<br>At 31 December 2022 174,542 174,542<br>At 31 December 2021 46,802 46,802<br>**----- End of picture text -----**<br>


## Development costs 

Development costs have been capitalised in accordance with FRS 102 Section 18 Intangible Assets other than Goodwill and are therefore not treated as a deficit to the charity. 

## 17. Tangible fixed assets 


**----- Start of picture text -----**<br>
LAND AND  FURNITURE AND  MOTOR TOTAL<br>BUILDINGS £ EQUIPMENT £ VEHICLES £  £<br>Cost<br>At 1 January 2022 857,460 1,297,915 171,233 2,326,608<br>Additions 470,068 92,477 35,649 598,194<br>At 31 December 2022 1,327,528 1,390,392 206,882 2,924,802<br>Depreciation<br>At 1 January 2022 19,526 972,645 77,478 1,069,649<br>Charge for the year 93,607 188,615 18,702 300,924<br>At 31 December 2022 113,133 1,161,260 96,180 1,370,573<br>Net book value<br>At 31 December 2022 1,214,395 229,132 110,702 1,554,229<br>At 31 December 2021 837,934 325,270 93,755 1,256,959<br>**----- End of picture text -----**<br>


Included within the net book value of land and buildings above is £4,036,528 (31 December 2021: £2,819,757) in respect of freehold land and buildings and £0 (31 December 2021: £0) in respect of leaseholds. The additions in the period relate to the refurbishment of the Head Office. Within tangible assets last year investment property was included at historical cost. In this years note investment properties have been separated out and shown in note 18 at market value. 

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108 

109 

## NOTES TO THE FINANCIAL STATEMENTS 

## For the Year Ended 31 December 2022 

## 19. Debtors 


**----- Start of picture text -----**<br>
31 DECEMBER  31 DECEMBER<br>2022 £ 2021 £<br>Prepayments 183,515 157,822<br>Other debtors 493,887 211,688<br>677,402 369,510<br>**----- End of picture text -----**<br>


## 18. Fixed asset investments 

|18. Fixed asset investments||||
|---|---|---|---|
||**31 DECEMBER**<br>**2022 £**|||
|Investment properties|3,000,000|||



Last year investment properties were included in tangible assets at historical cost. This year we have separated investment properties in note 18. Based on the fact there has been no change in net funds or asset value management have considered this a reclassification rather than a restatement. However, to give a true and fair understanding for users all values transferred between asset classes have been presented in the notes as if they were always there. This presents the supplementary notes in a different way to the comparative period primary statements. There has been a valuation of the property conducted by independent surveyors Malcolm Stuart in June 2023. Malcolm Stuart are RICS registered valuers based in Tadcaster, UK. 

## **Investment properties** 


**----- Start of picture text -----**<br>
INVESTMENT<br>PROPERTIES £<br>Cost or Valuation<br>At 1 January 2022 1,962,298<br>Revaluation 290,999<br>Additions 746,703<br>At 31 December 2022 3,000,000<br>Provision<br>At 31 December 2022 -<br>Net book value<br>At 31 December 2022 3,000,000<br>At 31 December 2021 1,962,298<br>**----- End of picture text -----**<br>


## 20. Cash and cash equivalents 


**----- Start of picture text -----**<br>
31 DECEMBER  31 DECEMBER<br>2022 £ 2021 £<br>Cash on hand 15,225 -<br>Cash at bank 4,318,316 4,472,186<br>4,333,541 4,472,186<br>**----- End of picture text -----**<br>


## 21. Creditors: amounts falling due within one year 


**----- Start of picture text -----**<br>
31 DECEMBER  31 DECEMBER<br>2022 £ 2021 £<br>Trade creditors 249,051 79,096<br>Other taxation and social security 79,060 70,273<br>Other creditors 254,178 19,284<br>Accruals 484,396 387,162<br>1,066,685 555,815<br>**----- End of picture text -----**<br>


## 22. Creditors: amounts falling due after one year 


**----- Start of picture text -----**<br>
31 DECEMBER  31 DECEMBER<br>2022 £ 2021 £<br>Other loans - 137,715<br>**----- End of picture text -----**<br>


## 23. Obligations under leases and hire purchase contracts 

The charity has no obligations under the lease and hire purchase contacts (2021: Nil). 

There has been an evaluation of investment property by an independent valuer in June 2023. 

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110 

111 

## NOTES TO THE FINANCIAL STATEMENTS 

## For the Year Ended 31 December 2022 

## 24. Pension and other schemes investments 

The charitable company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £150,393 (2022: £96,316). Contributions totalling £17,393 (2022: £21,871) were payable to the fund at the reporting date and are included in creditors. 

## 25. Funds 


**----- Start of picture text -----**<br>
BALANCE  OTHER BALANCE AT<br>INCOMING  RESOURCES<br>AT TRANSFERS RECOGNISED  31 DECEMBER<br>RESOURCES EXPENDED<br>1 JANUARY  £ £ £ GAINS/ [(] LOSSES [)] 2022<br>2022 £  £  £<br>Unrestricted<br>funds<br>General<br>General 6,224,635 8,271,902 (3,903,690) (3,339,655) 291,000 7,544,192<br>Restricted<br>funds<br>Feeding - 2,686,698 (5,165,498) 2,478,800 - -<br>Emergency 1,189,589 3,035,259 (4,298,107) 73,259 - -<br>Orphans - 5,451,755 (4,757,621) - - 694,134<br>Water - 2,233,630 (1,860,812) - - 372,818<br>Medical - 92,332 (30,447) - - 61,885<br>Community - 1,314,662 (2,102,258) 787,596 - -<br>Total<br>restricted  1,189,589 14,814,336 (18,214,743) 3,339,655 - 1,128,837<br>funds<br>Total funds 7,414,224 23,086,238 (22,118,433) - 291,000 8,673,029<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
BALANCE AT INCOMING  RESOURCES  BALANCE AT 31<br>TRANSFERS<br>1 MAY 2021 RESOURCES EXPENDED DECEMBER 2021<br>£<br>£  £ £ £<br>Unrestricted<br>funds<br>General<br>General 4,150,174 2,736,755 (3,730,823) (2,164,133) 991,973<br>Restricted<br>funds<br>Restricted  3,192,104 2,040,558 - - 5,232,662<br>General<br>Feeding - 3,265,754 (3,845,088) 579,334 -<br>Emergency 1,042,788 1,728,030 (1,581,229) - 1,189,589<br>Orphans - 3,617,986 (4,691,231) 1,073,245 -<br>Water - 1,856,138 (2,138,385) 282,247 -<br>Medical - 147,153 (186,819) 39,666 -<br>Community - 641,802 (861,488) 219,686 -<br>Total<br>restricted  4,234,892 13,297,421 (13,304,240) 2,194,178 6,422,251<br>funds<br>Total funds 8,385,066 16,034,176 (17,035,063) 30,045 7,414,224<br>**----- End of picture text -----**<br>


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113 

112 

## NOTES TO THE FINANCIAL STATEMENTS 

## For the Year Ended 31 December 2022 

## 26. Analysis of net assets between funds 


**----- Start of picture text -----**<br>
UNRESTRICTED  RESTRICTED  TOTAL FUNDS AT<br>FUNDS  FUNDS 30 APRIL 2022<br>GENERAL £  £ £<br>Intangible fixed assets 174,542 - 174,542<br>Tangible fixed assets 1,554,229 - 1,554,229<br>Fixed asset investments 3,000,000 - 3,000,000<br>Current assets 3,882,106 1,128,837 5,010,943<br>Current liabilities (1,066,685) - (1,066,685)<br>Total net assets 7,544,192 1,128,837 8,673,029<br>**----- End of picture text -----**<br>


## 27. Related party transactions 

Esplanade Vale Media Limited, trading as British Muslim TV (BMTV) 

During the period Penny Appeal paid £1,188,818 to BMTV for advertising and for producing a number of documentaries on behalf of the charity. For transparency, it is disclosed that Esplanade Vale Media Limited had separate commercial agreements with companies owned or controlled by Adeem Younis, a Trustee of Penny Appeal. 

During the period, Esplanade Vale Media Limited made the following payments to such companies under those agreements: £170,400 (year ended Dec 2021: £160,000) for advertising; £0 (year ended 30 Dec 2021: £57,600) for studio and broadcast equipment rental; £132,000 (year ended Dec 2021: £88,812) for property rental; and £28,800 (year ended Dec 2021: £19,200) for IT network rental. 

These were independent payments made by Esplanade Vale Media Limited for services provided to it, and these did not impact on the contractual arrangements or payments between Penny Appeal and Esplanade Vale Media Limited. 

## 28. Subsidiary accounts 

The Charity owns 100% of the shares of its trading subsidiary Penny Appeal Trading Company Limited (Company no 09522253) and Penny Appeal Ventures Limited (Company no 11051892). 

Due to the size and level of transactions being immaterial, both subsidiaries have not been consolidated into Penny Appeals accounts. 


**----- Start of picture text -----**<br>
UNRESTRICTED  RESTRICTED  TOTAL FUNDS AT<br>FUNDS  FUNDS 30 APRIL 2021<br>GENERAL £  £ £<br>Intangible fixed assets 46,802 - 46,802<br>Tangible fixed assets 3,219,256 - 3,219,256<br>Current assets (1,580,555) 6,422,251 4,841,696<br>Current liabilities (555,815) - (555,815)<br>-<br>Creditors over 1 year (137,715) (137,715)<br>Total net assets 991,973 6,422,251 7,414,224<br>**----- End of picture text -----**<br>


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PENNYAPPEAL.ORG 03000 11 11 11 

Penny Appeal, Penny Appeal Campus, Thornes Park, Wakefield, WF2 8QZ 

PENNY APPEAL IS A UK REGISTERED CHARITY 1128341 AND UK REGISTERED COMPANY 06578382.