Charity number: 1130350 STARFISH MALAWI UNAUDITED TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 STARFISH MALAWI CONTENTS Page Rderence and admlnistraiivo d•tslls of the Charlty, Its Trust•¢s and advlse Trust•es' r•port Ind¢p•ndent •xamSn•rfi report Stat•mont of fSnanclal a¢tfvltl Bal•ne• *h¢•t N¢t•• to th• fln•nclal •tat•m•nl• 9-19 STARFISH MALAWI REFERENCE AND ADMINISTRATIVE DEfAILS OF THE CHARtrY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021 Trustees C Knott R A Sharpe T Pickford M A Mrtche B Jacks PABeH Charlty r•glstered numbèr 1130350 Prln¢lpal offlcfr Alderden CrAI Spondèn L•no Sandhursl Crartbft)ok Kgnt TN16 SNR Ind•p•nd•nt Examln•r D Cothraw BS¢ BFP FCA For and on behaw ot MHA Madntyre Hudson. Chartered A¢￿UntantS Victoria Court 17-21 Ashlord Road Maidstone Kent ME14 5DA Page 1 STARFISH MALAWI TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Thè Trustees present their report wih the finan¢ial statements of the charity for the year ended 31 December 2021. The Iwstees have adopted the promsions of Accounting and Reporlng by Charitio$. Statement of Recommended Practice applKable to charities preparing their accounts in accordan¢e wrth the Finan¢ial Reporting Stand8rd applic￿• In the UK and Repubk of Iro￿nd IFRS 102) leffective 1 Januw 2019}. ObJ•ctlves and act￿ltIeS . Oblgct5ves and •lm$ starfish Malawi started In 2003 as g sThll Chfistian organisahon, fdl>¥Sng a to Malawi by ts founder, Chrls Knott. w￿h a calling to"build the chur¢h and the sch¢xif. which became J)uild the kingdom of God in Ihe live5 of childr?n" Ag we seek lo understand and eV￿$S this calling, St8tffish ¢ontinu8S to vth tirelessty in the schools in the UK and Malawi through commrtted lethrs and Christkan$. Wo are Christian in *Jentity. 8¢tive in educat￿ arKI Caring in tharècter. Our primary are¥ of work in is in the dL%trict of S4wna, th0￿h w• Still somo ¢onn8¢lion8 with th• pital. Lilongwe, and Kasungu. Starfish Malawi also w•k$ lo make a diff¢rence b￿. - PrOV￿￿1n9 acc•$8 to quality 8￿(￿￿1cM Iw children in Malvwi w that they can lrft thom￿￿8& and th•lr ¢ommunltigS Out of povety - Promotsng a positNe commUnK•t￿n and int&r¥th"on bets￿ people of drfler•nl cultures and backgrounds. thereby raisin9 awareness of $iniL9rit￿, drflewces and 8harin9 ¥SPiratio￿ a$ gk*bal cilvzens vrith 8 godty outSJok - Provhjing support to cLyrnnUnrt￿ lo inw80 awar8n888 ofthe HIV and AIDS pandem￿. th•r•by devebpin9 resilien￿ for ￿ng sustainth fves - Empowering the vuln¢r•ble and poor lo hamess their potential to swtch trom le￿n9 on handwouls lo seW-sufficier￿Y in th¢ face of God$ provision - Engaging everyone in Ihe chaMeng¢s to rich and F4)or al*e - GI￿ng peoplo the opportunty to kn(N Jesus Christ as saY￿r #nd Lord - Undorst¥nding Jesus, that it is l)18ssgJ to gtve than lo re￿fv9 In sèttlng objectw•$ and plannirvJ for *IN1t￿5, the Trustees ha￿ gNen due Cons￿or•I￿an to general guid¥n¢e published by the Ch•rty Commww relating to pubk benefit. IrKI￿J1rVJ the guidance'Public benafrt.. wnnirvJ ¢harty IPB21'. Page 2 STARFISH MALAWI TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 A¢higvements and perfomiane• a. Charitable actlvltles 2021 was another extraordinary year for the woild. let abne Slathsh Malawi. Schcds often stayed cltssed and people were requested to stay at hom¢. in Malam as well as th& UK. This definit0￿ changed the na￿re of the wtyk Ihal we did. The quest￿ we had lo ask was could we Gonb"nue to support those in need. Vtt￿n our normal procedures ¥nd processes had lo be ￿VIeweTh ol the going concem basi$ Can be found in the accotjnling pdi¢ies. P8ge 3 STARFISH MALAWI TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDEO 31 DECEMBER 2021 b. R•serves policy and financlal revlew It 1$ th? policy of the Charitys tr1151ees lo mwntain unreslrKa¥d funds. which are fra¢ reserves of Ihe Charity. at a level that equates lo a minimum of three months of operatin9 expendrture. This provides sufficient funds to cover management, administr•tion and support ¢osts. and to respond to emergency situations. We just lell thi at the end of tho year, but knew that runnN)g costs were ¢o*red and income wa$ expeded. The fat￿1* for hokling thi% rese￿ is #s fol¢hvs'. - to ensure thè financial security and proper slaffing of the Charty - to pthde adequate rewurc•s lo meet ￿ thaknges by ikn¥ and uncertain funding streams During the period undèr rewvw, the total in¢tyne receivad by the charity wras £339.16412020.' £245.2861. Thè principal souices ol in¢om¢ were Ir￿n ln$trtut￿￿al aThJ indw*Jual donat￿n$.. the trust¢es and staff arg 9m1￿ul for Ihis ongoing support. Given Ihe current •¢onomK cfimate. the truslees are satsf*d with the perfomance oftho charty durlng the year and with the finanGial posrtion as at 31 De¢ember 2021. The truste88 consid&r the charity is in a good p¢)silion to continue it$ o¢tivities during the coming ypar and that the chantys asstrts are adequate to fulfrl its obligations. H￿er. the IN8lee5 wll contin(* to explore optws for fflainlaintsig ¥nd ￿creasing in¢om¢ levels. c. COV1[￿19 Smpa¢t •latement We have Seen our Irttvn• In¢r•a5e during thè ￿ndern￿ and 8r• grateful lo our 8UPPOrters. 11 th* silualion was to w¢ys¢n and our income was lo be aff8ct8d, our reserves would alltsw us 8cffle time before we needed lo scal& b¥¢k our prciects so thai this could be managed properly to minimise disruption. d. Prfn¢lpal fundSng DurirvJ the ￿or, prin¢i>al fundiNJ for bth unr•stri¢ted and restsicted •#ivitie8 cam8 from don4tiOnS and fiJndraisiTrg. structur•i gov•rn*nc• and management . Constitutton Starfish Malawi is a regi$t•red d￿rIty. nUM￿r 1130350. a￿1 is ¢cffjsts"luted under a Tfust deed. b. Methodg of appolnkn•nt or electlon of Trust••¥ The managèment of the Chafity is the fesponsibilty Tnkns th are elected ¢¢>opled under th• lefms of th* Trust deed. . Flnanclal rlsk management The Trustees have assessed the major risks lo which the Charty is exposed. in particuhr those retated to the operations and finances of the Charty. and are Satisf￿ that sy3lems and pl￿d￿re% are in pia¢e to mrtigale exposure lo the major risks. Page 4 STARFISH MALA TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 31 DECEklBER 2021 Plans for futur• pw5od• We ¢ontinue lo wort wlh our existiro supportef3 and ￿ for trusts and grants. Statsmont ol Tru•t•o8' reJpon•lbllltkni The Truslees aro respon￿ble for prep8ring tha Trustees. rem artd the financial statements in ac¢ordanc8 with applublè 18w and United lthngdom Accounting Slandaf¢Js (Unrted ￿"n9￿Orn Generalty Accepted Accounting Practice). Tho ￿ #P￿ICable to ¢harilies in England & WaS8s r¢qubre5 the Twslees to pt¥pare financial statem•nl8 for each financral y&8f which give a tru• and fair vithv ol the state of affairs of the Charity and of its incoming resources ond aFplication of re50Ufces, induding ts incom$ and expendrture. for that p•riod. In preparing the finanaol $tslements, the Trustees are requi￿ to= Select 8Uitabts ac¢ounling pol¢ciès and then appty Ihem c4)n$ist¢ntty,' observe the mèlh¢d$ and prrnc4ple5 of the Charilits SORP IFRS 1021.. make judg•ments and a¢¢ounb"ng estwnates that are reasonabk and Pfudent., state whethtrr apP1Kab￿ UK Aecountin9 Stsndards IFRS 1021 have been fomowed. sutye¢t to any matorial departures disckJ88d an¢Y eXp￿Ined in the financial $latements', prepare the financial stat•ment8 on the 9ty0g conc4m basis unle88 it 18 Inapprcyri8te to prt8ume thal th• Charity wll continue in busine The Trustees are ￿S￿nsIb￿ for keeping adequate accounting record$ that are sufficient lo show and explain Ihg ChariV8 tr8nsathon$ and di8dose wth reasonatrje accuracy al 8ny t¥ne th8 financial position ol the Charity and enable Ih•m lo ensure that the financial statements compty the Charities Act 2011, the Charity IAccountS 8nd Reports) RoguLitions 2008 and ihe prOvis￿n6 of th8 Trust deed. Th&y are also responsibl& for $aleguarding the a$so1s of the Charty and hence fr>r ta￿.ng rea¥￿•blo steps for the prevention and detection of fraud and othe1 iryegularities. Appr by ol the members of the board ofTru8teey and glgned on Iheir lJ•hèll by.. C Kn<)tt Trustee Date". Page S STARFISH hlALA INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Independent •xaminerfs report to the T￿￿ta•S of Starfish Malawl fthe Charlty'l I r¢port lo th• ¢harty Trustees on my examinat￿ of the ￿c(¥Jftts of the Charity for the year ended 31 December 2021. Responslbllltles and bash of report As the Trusl¢e5 of the Charity ytyJ are respon$ibk for the proparation of the accounts in acC￿rdan￿ wth the requirem•nts of the Charitios Act 2011 Ilhe 2011 Adl. I ￿pOrt in respect of my exaMinal￿n ol the Chwitrfs accounts carried out urbder section 145 of the 2011 Act and in ¢arrwng cyjt my ￿mInat￿n I the applKable Directions 9Nen by the Charty Commission und•r se¢lion 145ISllbl of the 2011 Act. Ind•￿￿d¥nt oxamSn•rf$ $tat•menl Since Charitys gross incomg exceeded £250,000 your examiner musl be a momber ol a body li$l8d In section 145 of the 2011 Act. l ¢onfinD that l am qudrf*d to uThlertake the examination because l am a of the ICAEW, which is one ol the listed bodies. I have wnpleted my examination. I confim that no matters have come to my attention in ￿nneCtion with th8 ex8min8ts.on gwitvJ m• ¢8use to beI￿ve th91 in any matèrial respect.. accounting records wera r￿t kept in respeci of the Chafity 41 r•qulred by seciion 130 of the 2011 Act., or th• accounts do not a¢wd thos• r¢¢oTds'. or the accounts do not Ccffip￿ ¥￿th the applicab￿ reqvirements con¢wning the lomi and ¢onlènl of *ccounts set o1rt In the Chariti8s (Accounts and R¢ptsrtsl Regulation$ 2008 oiher than •ny requirement that the gc¢ounts gNe a •nd fairf vi** i¥ not a matter ¢onsidereA as p8rt of an indep8nd&nt examingtion. I have rKJ concom$ and haNY com• a¢ros$ nts dher matters M COnn•¢t￿ with tho exarrinaticm lo which attention should b• drawn in this rewt in orderto enabl* a proper understanding of the account$ to bè reached. Signed.. Dated.. 22 August 2022 D Co¢hrnn￿Dy0t Bse BFP FCA Independent Examiner For and on behaw of MHA Maclntyre Hudson. Chartered Ac¢ountsnls Maidstone Untt¢d Kingdom Pag¢ 6 STARFISH MALAWI STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021 Unrestrlct•d funds 2021 R•strict¢d nds 2021 Total funds 2021 TolAI fvnds 2020 Not• Income from: l)oThations and grants Oth•r trading actiwti¢$ 69.342 7.014 235,234 27,574 304,S76 34,588 227,335 17,951 Total Incom• 76.366 262.808 339,164 245.286 Expendltur• on: Raising funds Charit¥ble actNitie$ 9.773 69.839 9.773 241,666 9,081 207,891 171.827 Total •xpèndEtur• 79.612 171,827 251.439 216,972 N•t lèxpndltur•Vlneom• Transfers between funds 13.2561 {2.4581 90,981 2.458 87,725 28,314 12 N•t m¢v•mont In fund• 15.7141 93.439 B7.725 28.314 R•¢oncSll•iJon of lunds: Total fund5 broughl fornY•rd Nel movement in funds 10.S06 16,7141 129.133 93.439 139.639 87.726 111.325 28.314 Total funds carrl•d loThnrd 4.792 222.572 227.364 139.639 Th• Statement offfinancial *tivities Indudes all gains * k)38es recogni$￿ in the year. Th• notes on pages 9 to 19 fomi part ofthe5e financigl statern￿. Page 7 STARFISH hlALAWI BALANCE SHEET AS AT 31 DECEM8ER 2021 2021 2020 Currnnt a￿•￿ Debtors Cash at bank and in hand 10 229.612 141,179 229.612 141.679 Creditors.. gmourhts falling du• wrthin one year 11 {2.2481 (2,040) N•t ¢urr•nt a•••ts 227.364 139.639 Total n•t •••ets 227.364 139,639 Charlty ￿n61 Restrictod fvnds Unrestricted funds 12 12 222.572 4.792 129, 133 10,506 Tot41 fund• 139.639 The finanaal ststemenb w•re ar￿ authorwd issue by th• Truste￿ and signed on Ih•ir bohaff by.. C Knott Trustee D81e'. The notes on pages 9 to 19 fonn part of these finandèl $tatem&nl8. Page 8 STARFISH MALAWI NOTES TO THE HNANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accountlng polScles 1.1 Basls of pr•paratlon ol firtancial Statofflonts Starfish Malawi 15 an Unl￿￿orated IN￿*. consbtuted under 8 Trust Oead. The financ￿1 statemènt5 have beon prepared in accordan¢e with the Charities SORP {FRS 1021- Accounting and Rèporting by CharrtEs.' Statement ol Rè¢ommended pra￿lce appliGable lo charrties preparing their accounts in ac¢ordance wrth the Financial Rewling Stsndard ¥ppluble in tha UK and Repu￿￿ of IreL8nd IFRS 102} leffectNe 1 Janvary 20191, the Financial Reporting Standard applicab￿ in the UK aNI Republ￿ ol Ireland IFRS 1021 and the Charities Act 2011. The financial statements are present•d in slerfing, which is th• functional currency of the ¢harty, and Tounded to the nearest £1. The finan¢ial stslements have be•n prepa￿ to give a Irue and fairf vw and have departed Irom the Charrties IAccount$ and Reports) RegulatK)n$ 2008 onty to the èxtent required to provide a Ifu* nd f•irf This departum has inv&W folk>•￿n9 the Charities SORP {FRS 1021 published on 16 Juty 2014 Tather than the A¢¢ounling and Reporting by Charit￿$.. Slatemont ol Recommandod Practice effective froffl 1 Aprd 2W5 has svjce withdrawn. St¥rfish MaLThi meets the definrtion of a Publ￿ ben&frt ¢nlrty und•r FRS 102. Assets and liabilitigs ara inthalty reco9nised al h￿1¢￿1 cost or transaction ￿ue unl8$$ Other￿$& slated in th• r•l•vant accounting polw. 1.2 Golng con¢wn The Trust••$ have consid¢red th• Charitys fingnciol pojition. In particulqr tho potents81 implication$ of th• cov1￿19 pandemi Whilst the eventual finanrAal imp¥¢i of the paTraeM￿ on the Charty, arKI on th& ovgrall economy. remains uncertain, 9Nen the ongoiThJ financial support and funding re¢eNed after thg year end. the Trustees have 8 reasonable eXpedal￿)Tr that the Charity will be ablè to contsnue to operate lor th• foreseeable ftrtur•. The Trust•e$ Consider that it is appropn.ate lo pr4)aro the finan¢ial stalem•nlg on a going ¢on¢em basis. 1.3 Incom• AJI in¢ome is reccgnised once the Chaiity has entrtlemonl to the income. it is pfoboble that th• income be ree•ived and the amount of incm receivable can be Measu￿ reliably. 1A Expendltur• Expenditure 15 recognised On￿ Ihern is a kgal or constructive abr￿atIOn to transfer ecOr￿le benefrt to a third party, rt is probab￿ that a transfer of economic benefits wll be ro4uired in settlèrnent and the amtsunt ofthe obligation can bè measured relkqbty. Expenditure is classified by actiwty. The costs of each activity are made up of the of direct costs and shared costs, including support costs invofved in undertaking each a¢liffji. Direct costs attributable lo a single acltV5ty are allcrAted directly to that activity. Shared costs whKh wnlribute lo fflore than ￿¢e aciivty and support ¢0sts which a not attributabk to a sirwJle adivity are apportioned bètween those aetivilies a ba515 consistent wrth the use ol resources. Central staff costs are dlocated on the bw of M)e spen( and d&preciats)n charges allctated on the F4)rtKin of the as5efs us¢. Page 9 STARFISH MALA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEIABER 2021 Accountlng pollcles Icontlnuedl 1A Expendltufe Icontlnu8d Expenditure on raising funds includas al eypenditure in¢urred by the Charity lo raise funds for its ¢haritable purpos&s ¥nd indudes ¢osts of all fvndraising acliwlies èvents and non