REGISTERED COMPANY NUMBER: 06195961 (England and Wales) REGISTERED CHARITY NUMBER: 1129479
REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
FOR
PRAXIS UK (A COMPANY LIMITED BY GUARANTEE)
Prime Chartered Accountants Corner Oak 1 Homer Road Solihull B91 3QG
PRAXIS UK
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
| Page | |
|---|---|
| Reference and Administrative Details | 1 |
| Report of the Trustees | 2 to 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 to 8 |
| Notes to the Financial Statements | 9 to 15 |
| Detailed Statement of Financial Activities | 16 |
REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2021
PRAXIS UK
TRUSTEES G Devadass B Kumar (resigned 17/1/22) T Thomas T M Vadakkancheril M Kochupillai (appointed 17/1/22) REGISTERED OFFICE 33 The Birches Farnborough Hampshire GU14 RP REGISTERED COMPANY 06195961 (England and Wales) NUMBER REGISTERED CHARITY 1129479 NUMBER INDEPENDENT EXAMINER Prime Chartered Accountants Corner Oak 1 Homer Road Solihull B91 3QG
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PRAXIS UK (REGISTERED NUMBER: 06195961)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Charitable objects
The charitable objects, as stated in the Memorandum and Articles of Association of Praxis UK are to benefit the general public through developing the skills of poor and marginalised sections of society in such a way that they are better able to identify and help meet their needs, and to participate more fully in society particularly through involvement in democratic and participatory processes. Such objects are to be advanced directly through action in the community and through the promotion of the efficiency and effectiveness of charities working to provide such benefits to such sections of society.
Strategic Directions
Praxis UK has developed a Strategy paper for 2008-2010. This strategy continues to guide the work of Praxis even in 2020-21. The organisation's vision is a world in which every person has a right to participate in decisions, which affect their lives. Praxis UK's Mission is to enable excluded people to have an active and influential say in their own equitable and sustainable development.
To achieve our aims, four strategic directions inspire us and give us guidance. They are based on the needs identified by our stakeholders and recent trends in participatory development. They are:
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Build the technical and organisational capacity of communities, civil society, the private sector and government to enable excluded people to have an active and influential say in their own equitable and sustainable development.
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Develop partnerships and strengthen mechanisms for effective and efficient communication and collaboration between communities, civil society, the private sector and governments.
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Advocate for appropriate participatory laws, procedures and policies for a more equitable and sustainable development to occur.
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Scale up the use of participatory approaches for a more equitable and sustainable development.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
In 2020-21, Praxis UK was able to carry out activities aligned with its strategic objective and to further its charitable objects for public benefit. This was largely in the form of consultancy contracts for development support services and capacity enhancement.
Praxis UK continued to work on issue of bonded labour and trafficking through Pathways, a digital case management system for survivors of human trafficking in collaboration with the UK Home Department. There was also a tremendous work put into creating ways for children and adolescents living in peri urban and rural areas to understand more about digital platforms and story telling and training them to create content for the same based on their lived realities. Two new areas that Praxis UK delved into this year include business and human rights, with a keen focus on the garment supply chain and sustainable production and procurement as well as on understanding the public justice system through survivors of bonded labour. During the second wave of the pandemic, Praxis UK focused its energies on supporting grassroots level partners in different parts of the world.
The year 2020-21 saw the unprecedented effects of the Covid-19 pandemic and a second wave due to the Delta variant which brought life to a grinding halt across the globe as well as impacted some on ground partners to a large extent. Praxis continues to manage with limited staff and the high dependency volunteers with support for operational matters being provided remotely, from Praxis India.
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PRAXIS UK (REGISTERED NUMBER: 06195961)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021
FINANCIAL REVIEW
Financial review
Praxis UK made a net surplus of £52,600 in the year ended 31 August 2021 (2020: £415,156).
The results for the year to 31 August 2021 are laid out in the Statement of Financial Activities and its state of affairs in the Balance Sheet. The trustees consider the state of affairs satisfactory.
Reserves policy
It has been and remains the intention of Praxis UK's trustees to pursue its charitable objectives in partnership with Praxis India, which has significant expertise and insights in this area. Support is anticipated to be through grants either to Praxis India itself or directly to projects it has identified.
Praxis India has requested Praxis UK to retain the funds till such time that it is requested by Praxis India.
FUTURE PLANS
In the next year, Praxis UK will be seeking more volunteers to represent it at forums and see some changes in its leadership. It hopes to engage with more UK based stakeholders and to generate enough opportunities to stay in business given the tough economic climate. Praxis UK plans to continue to fulfill its charitable objects through pursuing new partnerships and maximization of its income from current streams. The trustees acknowledge brief periods of uncertainty and change in plans and operations and hope to tide over these with minimal interruption to the core charitable work of the organisation. Praxis UK has planned to increase its geographical reach as well as diversity in the nature of tasks that it has done.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The organisation is a charitable company limited by guarantee, incorporated on 2 April 2007 and Praxis UK was registered as a charity on 6 May 2009. It is the intention of the Trustees to formally register it as a charity in the near future. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed by its Articles of Association. In the event of a winding up members are required to contribute an amount not exceeding £1.
Recruitment, appointment, induction and training of new trustees
The Trustees of the charity are shown on page 1
Trustees are appointed at the Board meetings or co-opted. On appointment, all trustees are provided with copies of constitutional documents.
There is a separate class of membership known as Guardian Membership. A new Guardian Member can be appointed only with the approval of existing Guardian Members who shall consult with the Board of Praxis India prior to making any new appointment. In the event there are no existing Guardian Trustees then Praxis India has the right to determine two new Guardian Members.
Organisational structure
All major operating decisions are made by the Chair of the Board of Trustees in consultation with other board members.
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PRAXIS UK (REGISTERED NUMBER: 06195961)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021
STRUCTURE, GOVERNANCE AND MANAGEMENT
Responsibilities of the trustees
The Trustees, who are the charitable company's directors under company law, are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations
Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charitable company and of the results of the charitable company for that period. In preparing these financial statements the Trustees are required to:-
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The Trustees are responsible for keeping 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 financial statements comply with the Companies Act 1985. 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.
Praxis India
Praxis UK was incorporated with the intention of bringing the experience and expertise of Praxis India to the North. Praxis India has been providing services to the development sector for many years and is considered a pioneering institute in the field of participatory research and training. Praxis India is not the parent company of Praxis UK but it is considered to be a related party. A separate class of Guardian Membership exists through which Praxis India has the ability to intervene in Praxis UK in exceptional circumstances.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
11 April 2022 Approved by order of the board of trustees on ............................................. and signed on its behalf by:
................................................................. T Thomas - Trustee
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PRAXIS UK (REGISTERED NUMBER: 06195961)
Independent examiner's report to the trustees of Praxis UK ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2021.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Jeremy Kitson FCA ICAEW Prime Chartered Accountants Corner Oak 1 Homer Road Solihull B91 3QG
Date: .............................................19/04/2022
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PRAXIS UK
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021
| 2021 | 2020 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| fund | funds | ||
| as restated | |||
| Notes | £ | £ | |
| INCOME AND ENDOWMENTS FROM | |||
| Charitable activities | 4 | ||
| Activities to advance core objectives | 308,307 | 528,810 | |
| Investment income | 3 | 101 | 951 |
| Total | 308,408 | 529,761 | |
| EXPENDITURE ON | |||
| Charitable activities | 5 | ||
| Activities to advance core objectives | 255,808 | 194,605 | |
| NET INCOME | 52,600 | 335,156 | |
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | |||
| As previously reported | 520,188 | 205,032 | |
| Prior year adjustment | 10 | (80,000) | (100,000) |
| As restated | 440,188 | 105,032 | |
| TOTAL FUNDS CARRIED FORWARD | 492,788 | 440,188 |
The notes form part of these financial statements
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PRAXIS UK (REGISTERED NUMBER: 06195961)
BALANCE SHEET 31 AUGUST 2021
| Notes FIXED ASSETS Tangible assets 11 CURRENT ASSETS Debtors 12 Cash at bank and in hand CREDITORS Amounts falling due within one year 13 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 14 Unrestricted funds TOTAL FUNDS |
2021 Unrestricted fund £ 23 - 1,019,406 1,019,406 (526,641) 492,765 492,788 492,788 492,788 492,788 |
2020 Total funds as restated £ 31 8,780 897,029 905,809 (465,652) 440,157 440,188 440,188 440,188 440,188 |
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2021 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
continued...
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PRAXIS UK (REGISTERED NUMBER: 06195961)
BALANCE SHEET - continued 31 AUGUST 2021
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 11 April 2022
............................................. T Thomas - Trustee
The notes form part of these financial statements
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PRAXIS UK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
1. STATUTORY INFORMATION
Praxis UK is a charitable company, limited by guarantee, registered in England and Wales. The company's registered number and registered office address can be found on the Reference and Administrative Details page.
2. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income.
Donated Income is income received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included in these accounts.
Incoming resources from charitable activities are accounted for when earned.
Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 25% on reducing balance
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
continued...
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PRAXIS UK NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021
2. ACCOUNTING POLICIES - continued
Fund accounting
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
Transactions with Praxis India are normally conducted in sterling and so exchange differences do not arise unless specifically charged by Praxis India.
3. INVESTMENT INCOME
| Interest receivable 4. INCOME FROM CHARITABLE ACTIVITIES Activity Consultancy and workshops Activities to advance core objectives Other income Activities to advance core objectives |
2021 £ 101 2021 £ 308,067 240 308,307 |
2020 as restated £ 951 2020 as restated £ 528,258 552 |
|---|---|---|
| 528,810 |
continued...
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PRAXIS UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021
| 5. CHARITABLE ACTIVITIES COSTS Activities to advance core objectives 6. DIRECT COSTS OF CHARITABLE ACTIVITIES Subcontractor charges 7. SUPPORT COSTS Activities to advance core objectives Support costs, included in the above, are as follows: Office costs Other costs Bank charges Depreciation of tangible fixed assets Governance costs Accountancy and legal fees |
Direct Support Costs (see costs (see note 6) note 7) £ £ 253,591 2,217 2021 £ 253,591 Office Governance costs costs £ £ 227 1,990 2021 Activities to advance core objectives £ 207 12 8 227 2021 Activities to advance core objectives £ 1,990 |
Totals £ 255,808 2020 as restated £ 192,717 Totals £ 2,217 2020 as restated Total activities £ - 38 10 48 2020 as restated Total activities £ 1,840 |
|---|---|---|
continued...
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PRAXIS UK NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021
8. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| 2021 | 2020 | ||
|---|---|---|---|
| as | |||
| restated | |||
| £ | £ | ||
| Depreciation - owned assets | 8 | 10 |
9. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.
Trustees' expenses
During the year to 31 August 2021, no expenses (2020: £95) were paid to trustees in respect of travel expenses.
10. PRIOR YEAR ADJUSTMENT
A prior year adjustment has been made to incorporate costs not included in previous years' accounts. This has led to a decrease in funds brought forward as at 01 September 2019 of £100,000 to £105,032.
Additionally there has been a further decrease in funds brought forward as at 01 September 2020 of £80,000 bringing funds brought forward to £440,188.
11. TANGIBLE FIXED ASSETS
| Plant and | |
|---|---|
| machinery | |
| £ | |
| COST | |
| At 1 September 2020 and | |
| 31 August 2021 | 749 |
| DEPRECIATION | |
| At 1 September 2020 | 718 |
| Charge for year | 8 |
| At 31 August 2021 | 726 |
| NET BOOK VALUE | |
| At 31 August 2021 | 23 |
| At 31 August 2020 | 31 |
continued...
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PRAXIS UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021
| 12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Prepayments and accrued income 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Other creditors Accruals and deferred income 14. MOVEMENT IN FUNDS Prior year At 1.9.20 adjustment £ £ Unrestricted funds General fund 520,188 (80,000) TOTAL FUNDS 520,188 (80,000) Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 308,408 TOTAL FUNDS 308,408 |
2021 2020 as restated £ £ - 8,780 2021 2020 as restated £ £ 522,715 462,716 1,106 1,106 2,820 1,830 526,641 465,652 Net movement At in funds 31.8.21 £ £ 52,600 492,788 52,600 492,788 Resources Movement expended in funds £ £ (255,808) 52,600 (255,808) 52,600 |
|---|---|
continued...
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PRAXIS UK NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021
14. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund TOTAL FUNDS |
At 1.9.19 £ 205,032 205,032 |
Prior year adjustment £ (100,000) (100,000) |
Net movement in funds £ 335,156 335,156 |
At 31.8.20 £ 440,188 |
|---|---|---|---|---|
| 440,188 |
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 529,761 529,761 |
Resources Movement expended in funds £ £ (194,605) 335,156 (194,605) 335,156 |
|---|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund TOTAL FUNDS |
At 1.9.19 £ 205,032 205,032 |
Prior year adjustment £ (180,000) (180,000) |
Net movement in funds £ 387,756 387,756 |
At 31.8.21 £ 412,788 |
|---|---|---|---|---|
| 412,788 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 838,169 838,169 |
Resources Movement expended in funds £ £ (450,413) 387,756 (450,413) 387,756 |
|---|---|---|
continued...
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PRAXIS UK NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021
15. RELATED PARTY DISCLOSURES
Praxis India is considered to be a related party of Praxis UK as it is able to intervene in the decision making process of Praxis UK in exceptional circumstances through the special category of Guardian Membership. In the year ended 31 August 2021 Praxis India charged Praxis UK £Nil (2020: £1,000) for it's services as subcontractor.
Praxis UK recovered expenses of £60,000 (2020: £89,818) during the year ended 31 August 2021 that were payable to Praxis India.
At 31 August 2021 Praxis UK owed Praxis India £522,716 (2020: £382,716).
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PRAXIS UK
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021
| INCOME AND ENDOWMENTS Investment income Interest receivable Charitable activities Consultancy and workshops Other income Total incoming resources EXPENDITURE Charitable activities Subcontractor charges Support costs Office costs Other costs Bank charges Plant and machinery Governance costs Accountancy and legal fees Total resources expended Net income |
2021 2020 as restated £ £ 101 951 308,067 528,258 240 552 308,307 528,810 308,408 529,761 253,591 192,717 207 - 12 38 8 10 227 48 1,990 1,840 255,808 194,605 52,600 335,156 |
2021 2020 as restated £ £ 101 951 308,067 528,258 240 552 308,307 528,810 308,408 529,761 253,591 192,717 207 - 12 38 8 10 227 48 1,990 1,840 255,808 194,605 52,600 335,156 |
|---|---|---|
| 528,810 | ||
| 529,761 192,717 - 38 10 |
||
| 48 1,840 |
||
| 194,605 | ||
| 335,156 |
This page does not form part of the statutory financial statements
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