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2021-03-31-accounts

Charity Registration Number: 1135589

HAKUNA MATATA FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Hakuna Matata (No. 1135589) Year Ended 31 March 2021

CONTENTS

Page
Trust Information 3
Trustees’ Report 4
Independent Auditors’ Report 9
Statement of Financial Activities 11
Balance Sheet 12
Statement of Cash Flows 13
Notes to the Financial Statements 14

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

TRUST INFORMATION

CONSTITUTION REGISTERED CHARITY NUMBER TRUSTEES

REGISTERED OFFICE

A registered charity governed by its Trust Deed

1135589

Mr Davide Serra Ms Anna Barassi Mr Richard Kelly Mr Carlo Barassi (Resigned 28 September 2020) Mr Matthew King Ms Francesca Toresella (Resigned 28 September 2020) Ms Lucy Challis Ms Jolanda Niccolini (Resigned 2 June 2021) Mr Harpal Singh Ms Silvia Merler (Appointed 28 September 2020) Ms Maria Bozzi (Resigned 28 September 2020)

4th Floor 1 St James's Market London SW1Y4AH

BANKERS AND CUSTODIANS HSBC Bank Pic HSBC Securities Services 8 Canada Square London E145HQ CUSTODIANS UBS Switzerland AG Baerengasse 16 8001 Zurich INDEPENDENT AUDITORS Arnold Hill & Co LLP Chartered Accountants Craven House 16 Northumberland Avenue London WC2N 5AP

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

TRUSTEES' REPORT

The Trustees present their report and audited financial statements for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out on pages 14 and 15 and comply with the current statutory requirements, the Charities Act 2011, the Trust Deed (as defined below), and 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 2015).

STATUS

Hakuna Matata (the “Trust”) was established on 15 March 2010 and registered as a charity on 19 April 2010, for exclusively charitable purposes pursuant to its Trust Deed dated 15 March 2010. The Trust Deed defines the objects and powers of the Trust.

TRUST OBJECTIVES AND MISSION

The Trust's objectives, as stated in the Trust Deed, are the holding of capital and income upon trust and to apply the income for the public benefit for exclusively charitable objects and purposes in any part of the world.

In setting the Trust’s objectives and planning its activities, the Trustees have considered Section 17 of the Charities Act 2011. In doing so they are satisfied that they have complied with their duty to have regard to the Public Benefit guidance published by the Charity Commission. The Trust’s activities and achievements are outlined throughout this Trustees’ Report and the Trustees believe they fully demonstrate that the Trust is providing public benefit.

The primary mission of the Trust, as agreed by the Trustees, is to:

. . .develop continuous financial support for the activities of the project “Help a Village” which demonstrably improves the lives of children living in poverty in developing countries by achieving a significant and sustainable impact.

ORGANISATION

The Board of Trustees meets regularly to review and update the Trust’s strategy and areas of activity, including consideration of grant-making, investment decisions, a review of the reserves policy as well as the overall risk profile of the Trust.

APPOINTMENT OF TRUSTEES

The Trustees who held office during the year were:

Mr Davide Serra Ms Anna Barassi Mr Richard Kelly Mr Carlo Barassi (Resigned 28 September 2020) Mr Matthew King Ms Lucy Challis Ms Francesca Toresella (Resigned 28 September 2020) Ms Jolanda Niccolini (Resigned 2 June 2021) Ms Maria Bozzi (Resigned 28 September 2020) Mr Harpal Singh Ms Silvia Merler (Appointed 28 September 2020)

The Trustees are selected on the basis of their skills and expertise and the contribution, in particular In the areas of business management and development, which they can make to determine the strategy and policies of the Trust and to monitor implementation.

The Trustees, who meet regularly, are responsible for finance, development and planning. There is no formal process for training Trustees, but training is provided to individual Trustees and to the Trustees as a whole as needs arise.

All Trustees give their time freely and no Trustee remuneration was paid in the period.

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

TRUSTEES' REPORT (continued)

TRUSTEES’ RESPONSIBILITIES

The Trustees 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).

Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources, including the income and expenditure, of the Trust for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the relevant law. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Trust’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statement may differ from legislation in other jurisdictions.

TRUST ACTIVITIES

The founding Trustees were inspired by two extraordinary people, Fausta Pina and Father Tarcisio Moreschi, who started the "Help a Village” project in central Tanzania.

This project provides a wide range of essential services to more than 65 villages with a combined population of 110,000. As well as the endemic poverty in the region, the early mortality rates, caused primarily by HIV/AIDS, has led to a high population of orphaned children.

Sadly many are infected with the disease from birth. Until now financial support to the project has been reliant on ad-hoc donations.

The primary mission of Hakuna Matata is to develop long term financial support for their project.

To aid this, the Trust is committed to providing €10,000 per month for the next 5 years. Funding began in October 2010 and the Trust will endeavour to donate at least a third of all monies collected through donations. The remaining funds are invested to ensure ongoing finances for the work of the “Help a Village” project and other charitable causes.

RESERVES POLICY

The Trustees are committed to applying the Trust’s resources in a responsible manner for the purposes of yielding maximum benefit.

To achieve this, the Trustees implemented a simple strategy of investing monies into a highly liquid portfolio, with generated income used to meet grant expenditure whilst preserving the capital base.

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

TRUSTEES* REPORT (continued)

RESERVES POLICY (continued)

Restricted Fund

Restricted funds are generated when the donor stipulates how their donation may be spent. In most cases, there will be a time lag between when such funds are received and when they are expensed. The Trustees ensure that these funds are expensed in accordance with the terms under which they have been donated to the Trust.

During the period no monies were donated which had restrictions on how the donations could be spent.

Expendable Endowment

Based on the Trustees' assessment of the Trust's aims, the Trustees will cultivate the endowment fund to a level that provides a mature asset base capable of producing a level of income that can sustain the Trust’s annual grant-making programmes on an indefinite basis and at a consistent, sustainable level regardless of any significant drop in income. The Trustees have the powers to convert any required amount of this endowment from time to time into an income which can then be utilised by the Trust to further its charitable objects in the future.

Operational Reserves

Cash flow projections for income and expenditure are regularly reviewed by the Trustees to ensure that the level of disposable net assets is adequate and that the Trust is in a position to meet all its grant-making and working capital commitments for the foreseeable future. In the event that the Trustees find themselves unable to meet the Trust’s commitments from reserves of Unrestricted Funds at their disposal, they will, draw on the Expendable Endowment to meet those commitments as necessary.

The reserves policy is reviewed annually to reassess the risks and reflect any changes to the Trust’s income, capital, financial obligations and long term plans for charitable expenditure.

RISK STATEMENT

The Trustees are responsible for the management of the risks faced by the Trust and have examined the major strategic, business and operational risks to which the Trust is and may be exposed. They are satisfied that the systems and controls are in place to mitigate and manage exposure to such major risks identified by the Trustees. They continue to review current processes recognising that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

GRANTING POLICY

The Trust primarily invests in and engages with partners who support the "Help a Village" project. The “Help a Village” primarily concentrates its efforts in the Iringa area of central Tanzania, which meets the Trust's objectives. In addition, the Trust may consider other ad-hoc grants.

INVESTMENT POLICY

The investment policy of the Trust is to maintain an approach that recognises the requirement for income to meet the commitment provided by the Trust to financially support the “Help a Village” project for the next 6 years with the desire for capital growth and the creation of an Expendable Endowment while safeguarding funds for future grant-making capacity.

The Trustees remain mindful of their duty to review and monitor regularly the management of the Trust’s investments. The Trustees are satisfied with the current investments and their allocation.

FINANCIAL REVIEW

During the year to 31 March 2021, the Trust made excellent progress on its primary objective of financially supporting the “Help a Village” project (the "Project").

The Trust’s monthly €10,000 and additional ad-hoc contributions to local self-sustainable projects, while directed at creating a long term positive legacy on the region’s economy apt at improving her children’s future prosperity, also provide continuous support to the healthcare and education needs of Tanzania's youngest and poorest.

Below is a brief description of the ongoing efforts and latest achievements.

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

TRUSTEES' REPORT (continued)

FINANCIAL REVIEW (continued)

Education

The Trust continues to assist in the provision of nursery care, primary and secondary education to children in the Iringa area of central Tanzania (the “Area”). Through partnerships, we have supported the building and running of 73 nursery schools across the region, allowing over 3,300 children access to primary education and providing jobs to 143 local teachers. Help the Village helps poorer children and young adults in the community to attend school by funding school fees and providing school uniforms, shoes and textbooks to 315 children.

The Trust also continues to support the Mamre Agriculture and Livestock College project in Mayale (the “College”), within the lllembula Catholic parish, which is one of the only dedicated agricultural colleges in the area, providing over 100 students each year with the tools to help their communities for the future. Agriculture is the key industry for the parish so the professional training the students receive at the college is truly indispensable to the region's growth. The college also provides 10 local teachers with a reliable income and runs as a working farm with the students learning hands-on how to manage livestock for profit. Hakuna Matata helps to provide learning resources such as books and practical veterinary equipment as well as building student accommodation and classrooms.

Sustainability initiatives

The Trust supports the Pamoja project, which is a community initiative aimed at involving local people in sustainable farming. The project supports 129 farmers through contract farming and dedicated training in order to improve sunflower crop production. Across 24 acres of fields, Inuka Farm produces sunflower oil, which is then sold at the market, revenues from these sales support INUKA Rehabilitation Centre, with an aim of self-sufficiency in the future. We passionately believe that through initiatives such as this, rural communities truly learn to live sustainably. Inuka Farm currently employs 6 vulnerable young people, helping them to reintegrate into their communities and providing a stable income.

The climate in Central Tanzania is very well suited to vanilla production and working with local and European experts, our goal with this exciting project is to create a traceable and high-quality vanilla product for the buyer and yield higher profits for the farmers. We currently have 3 net houses at Inuka, 1 at Mamre College, 1 In llembula Village, housing a total of 260 young vanilla plants, as well as an open-air site at Mamre. We expect to see our first harvest in around 2 years with a predicted yield of 260kg of vanilla beans. We hope this project will bring sustainable and reliable income to the region as well as diversifying the crops and growing the knowledge of the local community.

In a partnership with Algebris Investments, Hakuna Matata is planting young trees in and around our existing projects which will provide jobs and education in the area. During 2019 - 2020 over 52,000 saplings were planted and already in 2021, we have planted 12,000 more. The project not only aids in reforesting the over farmed region, but also teaches the young children in our care about the importance of the natural world and climate change. Many of the trees, when they reach maturity, will provide crops for the community such as Mango and Avocado.

In addition the Trust supports the Physiotherapy Centre’s Pamoja Project ("Pamoja Project"), a contact farming enterprise covering 24 acres of land, which aims to strengthen the agricultural network and sunflower oil commercial activity. The Inuka Farm produces sunflower oil, which is then sold at the market, and revenues from these sales support INUKA Rehabilitation Centre, with an aim of self-sufficiency in the future.

Orphanages

The Trust continues to provide financial support for the running of all the Area’s orphanages, providing funds to train, educate and pay salaries to the Putative Mums running the orphanages, as well as providing funds for the purchase of clothes for the children.

In addition, the Trust continues to fund the provision of medical assistance for the children at the orphanages, Including transport to and from the nearest hospitals whenever necessary, for routine as well as emergency assistance, and paying for doctors’ fees and medicines.

Health and assistance to the Disabled

Hakuna Matata supports the Inuka Rehabilitation Hospital with funding and technical advice. Inuka is the region’s first disability rehabilitation hospital, located in the small village of Wanging’ombe. The hospital delivers high quality services to both adults and children with disabilities and takes care of more than 2,800 children and 450 adult patients. In 2020 the hospital delivered 450 supportive devices; provided 1800 individual treatments to adult patients and attended 1080 children during weeks of Intensive treatment. It also engages in outreach projects with local communities to improve people’s understanding and acceptance of disabilities. Hakuna has to date donated 400 rough-terrain wheelchairs to the centre, which are specially adapted to the central African terrain and can be operated with hand controls.

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

TRUSTEES' REPORT (continued)

FINANCIAL REVIEW (continued)

In addition to the donations of £106,949 made to Help a Village’, donations of £212,943 were made to other charities during the year.

Total incoming resources amounted to £336,161 (2020: £718,617), made up of voluntary donations of £242,782 (2020: £620,484) and £93,379 (2020: £98,133) of investment income.

The asset base of the Trust stands at £2,472,912 (2020: £2,112,327) and is predominately made up of investments which generate sufficient income to enable the Trust to meet its ongoing financial commitments.

FUTURE PLANS

The future plans of the Trust are to continue to meet the main objectives of the Trust and to ensure that the application of any income for the public benefit is exclusively for charitable objects and purposes. To aid this the Trust will actively seek voluntary donations

INDEPENDENT AUDITORS

The auditors, Arnold Hill & Co LLP, have expressed their willingness to remain in office for a further year and a resolution to that effect will be put to the Annual General Meeting

On behalf of the Board Matthew King Trustee

Date 2« 3 *2 -2

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HAKUNA MATATA

Opinion

We have audited the accounts of Hakuna Matata (the ‘Charity’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the accounts, including a summary of 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:

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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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 trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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 charity’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.

Our responsibilities and the responsibilities of the trustees 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HAKUNA MATATA (continued)

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the Charity’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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

Detection of fraud and breaches of regulations

To identify risks of material misstatement due to fraud, we considered events or conditions that could Indicate an incentive or pressure to commit fraud or provide an opportunity to do so. Our approach Included:

We communicated identified fraud risks throughout our team and remained alert to any indications of fraud throughout the audit.

To identify risks of material misstatement due to non-compliance with laws and regulations, our approach was as follows:

• We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general charity experience, and through discussion with the trustees and other management (as required by auditing standards), and discussed with the trustees and other management the policies and procedures regarding compliance with laws and regulations;

We communicated Identified laws and regulations throughout our team and remained alert to any Indications of non-compliance throughout the audit.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each Identified fraud risk. We also performed procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, In particular the risks that revenue is recorded In the wrong period and that management may be In a position to make inappropriate accounting entries. Our procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiries of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HAKUNA MATATA (continued)

Detection of fraud and breaches of regulations (continued)

Owing 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, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding non-detection of fraud rather than error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) In preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which Is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Justin Moore (Senior Statutory Auditor) for and on behalf of Arnold Hill & Co LLP

Dated:

Chartered Accountants Statutory Auditor

Craven House 16 Northumberland Avenue London WC2N 5AP

Arnold Hill & Co LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Expendable Year ended Year ended
Unrestricted Endowment 31 March 31 March
Notes Funds Fund 2021 2020
£ £ £ £
Income
Donations and legacies 242,782 - 242,782 620,484
Investment income 2 93,379 - 93,379 98,133
Total Income 336,161 - 336,161 718,617
Expenditure
Costs of raising funds
Investment management costs 3 (36) - (36) (4,383)
Expenditure on charitable activities
UK based charities 4 (24,273) - (24,273) (32,460)
Overseas charities 4 (299,257) - (299,257) (691,627)
Cost of grant making (323,530) - (323,530) (724,087)
Total expenditure (323,566) - (323,566) (728,470)
Losses on investments 6 347,990 - 347,990 (167,045)
Net incoming resources before transfers 360,585 - 360,585 (176,898)
Transfers between funds 10 (360,585) 360,585 - -
Net movements in funds - 360,585 360,585 (176,898)
Total funds brought forward - 2,112,327 2,112,327 2,289,225
Total funds carried forward 10 - 2,472,912 2,472,912 2,112,327

The statement of financial activities has been prepared on the basis that all activities are continuing.

There are no recognised gains and losses other than those included in the results above and therefore no separate statement of total recognised gains and losses has been presented.

The accounting policies and the notes on pages 14 to 18 form part of the Financial Statements.

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

BALANCE SHEET AS AT 31 MARCH 2021

Notes 2021 202(
£ £
FIXED ASSETS
Investments 6 2,425,550 1,954,590
CURRENT ASSETS
Debtors 8 50 105,128
Bank and cash 59,423 63,295
59,473 168,423
CREDITORS: amounts falling due within one year 9 (12,111) (10,686)
NET CURRENT ASSETS 47,362 157,737
NET ASSETS 10 2,472,912 2,112,327
FUNDS
Unrestricted Funds 10 _ _
Expendable Endowment Fund 10 2,472,912 2,112,327
TOTAL FUNDS 10 2,472,912 2,112,327

Approved by the Trustees and authorised for issue on Vi

"2.0 i X and signed on their behalf by:

Matthew King Trustee

The accounting policies and the notes on pages 14 to 18 form part of the Financial Statements.

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

STATEMENT OF CASH FLOWS AS AT 31 MARCH 2021

2021 2020
£ £
Cash flows from operating activities:
Net cash provided by operating activities 97,751 (169,092)
Cash flows from Investing activities:
Proceeds from sale of investments 296,093 234,777
Purchase of investments (397,716) (541,631)
Net cash used in investing activities (101,623) (306,854)
Cash flows from financing activities:
Repayments of borrowing
Cash flows from new borrowing - -
Net cash used in financing activities - -
Change in cash and cash equivalents in the reporting period (3,872) (475,946)
Cash and cash equivalents at the beginning of the reporting period 63,295 539,241
Cash and cash equivalents at the end of the reporting period 59,423 63,295

The accounting policies and the notes on pages 14 to 18 form part of the Financial Statements.

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

a) 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The Trust meets the definition of a public benefit entity under FRS 102. The assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Accounting policies

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.

c) Critical accounting estimates and judgements in applying accounting policies

The Trust makes estimates and assumptions that affect the reported amounts of assets and liabilities within the financial period. Actual results may differ from those estimates. Estimates are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The key assumptions are explained in the respective accounting policy notes below.

d) Incoming resources

All incoming resources are included in the respective line items of the Statement of Financial Activities when the Trust is legally entitled to the income and the amount can be quantified with reasonable certainty.

Interest income and expense is recognised in the Statement of Financial Activities on an effective interest rate basis. Dividend income and expenses, when the underlying security is held directly by the Trust, is recognised in the Statement of Financial Activities on an ex-dividend basis, gross of foreign withholding taxes when receivable. Withholding tax is recorded on an accruals basis.

e) Resources expended

Resources expended are accounted for on an accruals basis. Constructive obligations (including grants payable) are accounted for as liabilities where it is probable that there will be a transfer of economic benefits and the amount of the obligation can be reliably estimated and communicated to the recipient.

Grants which the chanty has committed to paying but have the right to cancel are not recognised as liabilities.

f) Governance Costs

Governance costs are those costs incurred in the compliance with constitutional and statutory requirements including related professional fees, and are accounted for on an accruals basis. These costs are included under the heading charitable activities, and are allocated based on the costs of granting.

g) Financial assets and liabilities held for trading

Classification

The Trust classifies its investments in debt securities (other than those classified as loans and receivables), and equity securities as financial assets at fair value through the Statement of Financial Activities. These financial assets are classified as held for trading. Financial assets held for trading are acquired principally for the purpose of selling in the short term.

Recognition/de-recognition

Purchases and sales of investments are recognised on their trade date, which is the date on which the Trust commits to purchase or sell the asset. Investments are initially recognised at fair value and transaction costs for such investments are expensed as incurred. Investments are de-recognised when the rights to receive cash flows from the investments have expired or the Trust has transferred substantially all risks and rewards of ownership.

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

NOTES TO THE FINANCIAL STATEMENTS (continued)

1. ACCOUNTING POLICIES (continued)

g) Financial assets and liabilities held for trading (continued)

Measurement

Subsequent to initial recognition, these financial assets are measured at fair value. Any gains and losses arising from changes in the fair value of the financial assets are included in the Statement of Financial Activities in the period in which they arise and are based on the First In First Out (“FIFO”) method. Interest income from financial assets is recognised in the Statement of Financial Activities. Dividend income from financial assets is recognised in the Statement of Financial Activities when the Trust’s right to receive payment is established.

h) Investments

Listed and unlisted securities

Investments that are listed on or quoted on any securities exchange or similar and are regularly traded are valued at their market value with any unrealised gains and losses being taken to the Statement of Financial Activities.

Unlisted securities or listed securities not regularly traded, or in respect of which no prices as described above are available, are valued at their fair value by utilising prices obtained from the administrator based on net asset values.

During the year ended 31 March 2021, unlisted traded securities were held.

i) Foreign Currency Translations

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the Statement of Financial Activities.

j) Funds

Unrestricted Funds comprise those funds which the Trustees are free to use in accordance with the charitable objectives of the Trust.

Restricted Funds comprise those funds that can only be used for particular restricted purposes within the objectives of the Trust. Restricted Funds arise when the funds are specified as such by the donor(s) or when funds are raised for particular restricted purposes.

The Expendable Endowment Fund represents those assets held by the Trustees principally in investments. Income arising on the Expendable Endowment Fund can be transferred to the unrestricted fund and can then be expended in accordance with the objectives of the Trust. If the Trust is unable to meet its commitments from reserves of Unrestricted Funds, there would be a release of the Expendable Endowment to Unrestricted Funds to meet those commitments.

2. INVESTMENT INCOME

The investment income arises from interest received on cash deposits and fixed income securities within the investment portfolio held by the Trust. Dividend income is from equity securities within the portfolio held by the Trust.

2021 2020
£ £
Distributions from investments held 93,359 98,133
Bank interest 20
93,379 98,133

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

NOTES TO THE FINANCIAL STATEMENTS (continued)

3. COSTS OF RAISING FUNDS

The costs of raising funds relate to the costs associated with the purchase of the Trusts portfolio of investments.

4. CHARITABLE ACTIVITIES

Grant
funded
activity		 Support and
governance
costs		 2021 Grant funded
activity		 Support and
governance
costs		 2020
£ £ £ £ £ £
UK based grants 24,000 273 24,273 31,800 660 32,460
Overseas based grants 295,892 3,365 299,257 677,563 14,064 691,627
319,892 3,638 323,530 709,363 14,724 724,087

Of the overseas based grant payments, £106,949 (2020: £105,283) was used to assist in the “Help a Village” project which demonstrably improves the lives of children living in poverty in developing countries by achieving a significant and sustainable impact. Additionally, £nil (2020: £452,202) was granted to charities involved in the relief effort for COVID-19.

Analysis of support and governance costs

General Governance Basis of
Year ended 31 March 2021 support function 2021 apportionment
£ £ £
Accountancy Fees - 1,800 1,800 Grants made
Bank and custody charges 1,838 - 1,838 Grants made
1,838 1,800 3,638
General Governance Basis of
Year ended 31 March 2020 support function 2020 apportionment
£ £ £
Accountancy Fees - 1,800 1,800 Grants made
Bank and custody charges 12,924 - 12,924 Grants made
12,924 1,800 14,724

5. TAXATION

As a registered charity, the Trust is exempt from taxation on income and gains to the extent that these are applied in furtherance of its charitable objectives. No tax charge has arisen in the year for the Trust.

6. INVESTMENTS

Fair Value Fair value at
at 1 April 31 March Cost at 31
2020 Additions Disposals Total gains* 2021 March 2021
£ £ £ £ £ £
Overseas 1,954,590 397,716 (296,093) 369,336 2,425,549 2,060,635
Total quoted 1,954,590 397,716 (296,093) 369,336 2,425,549 2,060,635

* difference between total gains above and the Statement of Financial Activities (gain of £347,990) is due to the foreign exchange movements on bank balances which has been excluded in the above analysis, but has been included within the gains and losses on investments in the Statement of Financial Activities.

Financial Assets

2021 2020
£ £
Held for trading
Funds - Overseas 2.425.549 1,954,590
Total Financial Assets 2.425.549 1,954,590

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

NOTES TO THE FINANCIAL STATEMENTS (continued)

6. INVESTMENTS (continued)

Gains / (losses) recognised in relation to financial assets and liabilities measured at fair value

2021 2020
£ £
Realised gains on financial assets and liabilities and foreign exchange 12,592 (4,332)
Unrealised (losses)/gains on financial assets and liabilities and foreign exchange 335,398 (162,713)
Total realised and unrealised (losses) / gains 347,990 (167,045)

7. FINANCIAL RISK MANAGEMENT

Principles of Risk Management

The Trust’s financial activities may expose it to a variety of financial risks: market risk (including other price risk and interest rate risk), credit risk and liquidity risk.

The Trust is also exposed to operational risks such as settlement and custody risk. Custody risk is the risk of loss of financial assets and liabilities held In custody occasioned by the Insolvency or negligence of the custodian. Although an appropriate legal framework is in place that eliminates the risk of loss of value of the financial assets and liabilities held by the custodian, in the event of its failure, the ability of the Trust to transfer the financial assets and liabilities might be temporarily impaired.

The Trust’s overall risk management programme seeks to maximise the returns derived for the level of risk to which the Trust is exposed and seeks to minimise potential adverse effects on the Trust’s financial performance.

All Investments present a risk of loss of capital. The maximum loss of capital on equity and debt securities is limited to the fair value of those positions.

The Trust uses different methods to measure and manage the various types of risk to which it is exposed; these methods are explained below.

Market risk

(a) Other price risk

The Trust is exposed to equity and debt securities price risk. This arises from Investments held by the Trust for which prices in the future are uncertain. Where non-monetary financial Instruments, for example, equity securities, are denominated in currencies other than GBP, the price Initially expressed in foreign currency and then converted into GBP will also fluctuate because of changes In foreign exchange rates.

(b) Interest rate risk

Interest rate risk arises from the effects of fluctuations in the prevailing levels of market Interest rates on the fair value of financial assets and liabilities and future cash flows. The Trust has exposure to credit positions that expose the Trust to fair value interest rate risk. The Trust also holds cash and cash equivalents that expose the Trust to cash flow Interest rate risk.

Credit risk

The Trust is exposed to credit risk, which is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

The main concentration to which the Trust is exposed arises from the Trust’s investments In managed funds. The Trust Is also exposed to counterparty credit risk, cash and cash equivalents, amounts due from brokers and other receivable balances.

The Trust’s policy to manage this risk is to Invest in reputable fund managers, in addition all transactions are settled / paid for upon delivery using approved counterparties. The risk of default is considered minimal, as delivery of securities sold is only made once the administrator has received payment.

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Hakuna Matata (No. 1135589) Year Ended 31 March 2021

NOTES TO THE FINANCIAL STATEMENTS (continued)

7. FINANCIAL RISK MANAGEMENT (continued)

Liquidity risk

Liquidity risk is the risk that the Trust may be unable to generate sufficient cash resources to settle its obligations in full as they fall due or can only do so on terms that are materially disadvantageous.

The Trust has the ability to borrow in the short term to ensure settlement of its obligations and for short term financing. The Trust is also able to release the Expendable Endowment to Unrestricted Funds to meet any such commitments.

8. DEBTORS

8. DEBTORS
2021 2020
£ £
Distributions receivable - 4,502
Gift Aid receivable 50 7,606
Other debtors - 93,020
50 105,128
9. CREDITORS: amounts falling due within one year
2021 2020
£ £
Grants outstanding 8,511 8,886
Accruals 3,600 1,800
12,111 10,686

10. MOVEMENT IN FUNDS

Incoming Resources Gains on
2020 Resources Expended investments Transfers 2021
£ £ £ £ £ £
Unrestricted - 336,161 (323,566) 347,990 (360,585) -
Restricted - - - - - -
Expendable Endowment 2,112,327 - - - 360,585 2,472,912
Total funds 2,112,327 336,161 (323,566) 347,990 - 2,472,912

11. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2021 2020
£ £
Net income for the reporting period (as per the statement of financial activities) 360,585 (176,898)
Adjustments for:
Losses on investments (369,336) 92,086
Decrease/(increase) in debtors 105,077 (84,560)
Increase in creditors 1,425 280
Net cash provided by operating activities 97,751 (169,092)

12. CAPITAL COMMITMENTS

At 31 March 2021, the Trust had committed to providing €10,000 per month for the next 5 years to the Help a Village’ charity. The Trust has the option of cancelling this without notice, therefore no long term liability has been recognised in these accounts.

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