OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

← Pepal Foundation

2024-12-31-accounts

PEPAL FOUNDATION

(A company limited by guarantee)

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Registered number: 06949484

Charity number: 1137688

www.pepal.org

CONTENTS

Page
Reference and administrative details of the charity, its trustees and advisers 2
Trustees’ report 3
Independent examiner’s report 10
Consolidated statement of financial activities 12
Consolidated and charity balance sheet 13
Consolidated cash flow statement 14
Notes to the financial statements 15

TRUSTEES’ REPORT - PEPAL FOUNDATION FOR THE YEAR ENDED 31ST DECEMBER 2024

Directors and trustees

Vikas Karlekar Dr. Andriy Klepikov Tammy Lowry (resigned 31 March 2025) Edward Marsh Julie Saunders

Board advisor

Dr. Ritah Waddimba Nakigudde

Executive Director (who is neither a member of the company nor a trustee) Philip Krinks

Name of the Charity

The name of the charity is Pepal Foundation. The use of the word ‘Pepal’ is used as a collective term to describe the Pepal Foundation and member group companies.

Company registered number: 06949484
Charity registered number: 1137688
Independent Examiners: James Peach Kreston Reeves LLP
2ndFloor, 168 Shoreditch High Street,
London, E1 6RA
Bankers: Barclays Plc Leicester LE87 2BB
Moneycorp Zig Zag Building, 5thFloor, 70 Victoria Street,
London SW1E 6SQ
Absa Bank Uganda Plot 2/4 Hannington Road, Kampala, Uganda
Solicitors: Russell-Cooke 2 Putney Hill, London, SW15 6AB5
Registered Office: 167-169 Great Portland Street 167-169 Great Portland Street
Fifth Floor
London
W1W 5PF

2

TRUSTEES’ REPORT - PEPAL FOUNDATION FOR THE YEAR ENDED 31ST DECEMBER 2024

1. Introduction

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the financial statements of Pepal Foundation (the charity and the group) for the year ended 31 December 2024. The Trustees confirm that the annual report and financial statements of the charity and the group comply with the current statutory requirements, the requirements of the charity and the group's governing document and the provisions of the Statement of Recommended Practice (SORP), 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.

The Pepal group was set up with the support of Foundation Hoffmann to connect businesses and Non-Governmental Organisations (NGOs) to achieve effective and sustainable social change in the developing world through a focus on leadership and innovation. Originally an initiative of the registered charity, the International HIV/AIDS Alliance, Pepal became an independent group in July 2009.

The Pepal group comprises Pepal Foundation, a company limited by guarantee which received its charity registration on 31 August 2010, and its wholly owned trading subsidiary, Pepal Limited, a company limited by shares.

Pepal Foundation is a grant making body that raises funds from institutional and other donors to achieve its charitable objects, which are to:

In the year up to 31 December 2024, Pepal Foundation has provided grants to Pepal’s NGO partners and supported the delivery of the charitable Pepal leadership programmes and the testing of low resource, high impact innovations.

Pepal Limited is a for-profit entity which designs and implements the Pepal leadership programmes, and supports the implementation of Pepal’s activities.

Since the charity qualifies as ‘small’ under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.

3

TRUSTEES’ REPORT - PEPAL FOUNDATION FOR THE YEAR ENDED 31ST DECEMBER 2024

2. Activities, Achievements and Performance

~~Lo~~ Charitable Objectives

In setting objectives and planning activities, the trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit. The trustees always ensure that the programmes and activities undertaken are in line with Pepal’s charitable objectives and aims.

Pepal delivers its charitable objectives by:

During 2024, Pepal’s charitable objectives were delivered by staff who were employed by both Pepal Limited and Pepal Foundation. The Executive Director is an employee of Pepal Foundation and Pepal Limited and a company director of Pepal Limited. The Executive Director is not a trustee nor member of Pepal Foundation. During 2024, Pepal had four staff.

Current Pepal Programmes ~~[~~

Pepal believes that we will only find long term solutions to some of the most pressing and challenging issues in the Global South if the public, private, and charity sectors work together towards a common purpose. Pepal was created in 2009 to do this by bringing together global corporations, NGOs and governments to find practical solutions to big social issues. Our innovative programmes create immediate and scalable solutions and develop leaders who are capable of driving change, both in our programmes, and throughout their future careers.

During 2024 we reached 100 (2023: 165) corporate and national leaders through 3 (2023: 5) leadership programmes, and we developed and tested 15 innovations (2023: 21).

Krishi Tarang: Leadership and Agricultural Livelihoods in India

The Krishi Tarang programme aims to improve livelihoods and life chances for young people from agricultural communities in the highly populated state of Uttar Pradesh, India. We achieve this by developing the capacity of leaders and testing small scale innovations with the potential for local ownership. Krishi Tarang is a partnership between Pepal, Nestlé S.A., Progressive Foundation, other NGOs including Medha, Safe Society, Educate Girls, Shramik Bharti and Trust Community Livelihoods and the Indian agritech platform Gramik. In 2024, we delivered the two cohorts with project activities in rural districts of Uttar Pradesh, including Raebareili, Kanpur and Barabanki.

4

TRUSTEES’ REPORT - PEPAL FOUNDATION FOR THE YEAR ENDED 31ST DECEMBER 2024

Agriculture is the primary source of livelihood for nearly 60% of the population in Uttar Pradesh, yet it remains one of the least profitable sectors. Small and marginal farmers, who make up over 80% of the farming community, are often cultivating small plots of two hectares or less. With low yields, high input costs, and limited access to markets, many are trapped in cycles of debt and poverty. This makes agriculture a subsistence activity, rather than a reliable source of income.

Despite its status as India’s second-largest state economy, Uttar Pradesh’s agricultural sector faces systemic challenges that limit income generation. Irrigation coverage is uneven, with many farmers dependent on erratic rainfall. Access to quality seeds, fertilizers, and mechanisation is limited, particularly for smallholders. Farmers often sell their produce at distress prices to middlemen, losing potential earnings. Rural infrastructure such as roads, cold chains, and processing units is insufficient, preventing value addition that could boost incomes. Limited access to formal credit and crop insurance further exposes farmers to financial risk.

Leadership and social impact are the main pillars of the Krishi Tarang programme. In two cohorts in 2024 Krishi Tarang has developed 78 leaders: 36 Nestlé leaders from around the world and 42 leaders from the state of Uttar Pradesh. Twelve teams tested innovative projects reaching 1,392 farmers in 40 villages, where 52 farmers became locally employed, 13 started new small businesses, 361 farmers adopted new methods of farming such as sustainable farming and multi-layer farming which increased their income on average by 30%.

NJIA / iNJIA: Leadership and Cervical Cancer: Tanzania, India and Uganda

The NJIA programme, and iNJIA - the online version - aims to save lives by improving awareness of, and access to, cervical cancer prevention services for women in Tanzania, Uganda and India. We achieve this by developing the capacity of leaders, testing small scale innovations with the potential for scale and advocating for improved services. NJIA is a partnership between Pepal, F. Hoffmann-La Roche AG (Roche), the Governments of India, Uganda and Tanzania and several international NGOs including ICAP and MDH in Tanzania, Progressive Foundation and JHPIEGO in India and Baylor College of Medicine Children’s Foundation Uganda (Baylor-Uganda) in Uganda. In 2024, we delivered the final iNJIA leadership programme with project activities in the remote Kagera Region of North-West Tanzania. Previous programmes also worked in the Pwani region of Tanzania outside Dar Es Salaam, Uttar Pradesh state in India and in Rwenzori, Bunyoro and Eastern regions in Uganda.

Cervical cancer is a 93% preventable disease and is caused by the Human Papilloma Virus (HPV), the most common sexually transmitted infection. Cervical cancer primarily affects women in their childbearing years leading to significant losses for communities and families. Low-cost screening, treatment and vaccination can be delivered by primary health care facilities, and this saves lives and is available in all the regions in which NJIA operates.

Cervical cancer is the most common cancer among women in Tanzania, and the leading cause of cancer related mortality among women aged between 15 and 49. Each year about 7,300 new cases of cervical cancer are diagnosed in Tanzania: one of the highest incidences in Africa. In Uganda, 40 percent of all cancers are attributed to cervical cancer. India also has a very high burden; one woman dies of Cervical Cancer every 6 minutes. India, due to its large population, has the highest number

5

TRUSTEES’ REPORT - PEPAL FOUNDATION FOR THE YEAR ENDED 31ST DECEMBER 2024

of cervical cancer cases globally, and in the areas where NJIA operates there are two million women in need of screening. In all the regions NJIA operates, the potential for impact is significant.

The NJIA programme started in 2015, and ended in 2024, by which time we had created over 717 (2023: 695) NJIA leaders from Tanzania, India and Uganda, the overwhelming majority of whom say they have made profound changes to their leadership style and that they would recommend NJIA to a colleague.

Furthermore, strengthening the cervical cancer ecosystem has always been a pillar of the NJIA programme across all the countries we operate in. With 3 innovations addressing challenges on both the prevention and treatment sides of care in this final programme, NJIA leaders in Tanzania ~~,~~ screened over 1,300 women, administered 3,526 HPV vaccinations to young girls and treated over 68 women who tested positive for early lesions.

3. Financial Review and Results

Results ~~Lo~~

Overall, the group made an operating surplus of £10,109 in 2024 compared to a surplus of £6,714 in 2023. The surplus on restricted funds was £13,758 with unrestricted fund balances reducing by £3,649. Grant income of £15,482 was received during 2024 which will mostly be expended during 2025.

Income ~~eT~~

During 2024, the group continued to generate income from a mix of sources including:

In total, the group’s income was £299,224 in 2024 compared to £438,720 in 2023.

Expenditure ~~Lo~~

Expenditure totalled £289,115 during the year (2023: £432,006), covering the costs of grants to local implementing partners, salaries, programme development, programme implementation, support and administration costs.

During the year, the Pepal Foundation made £58,334 (2023: £23,194) of grants to in relation to supporting livelihoods of young people in agriculture, and £28,901 (2023: £69,992) of grants to

6

TRUSTEES’ REPORT - PEPAL FOUNDATION FOR THE YEAR ENDED 31ST DECEMBER 2024

support cervical cancer prevention work. Note 6 of the Consolidated Financial Statements provides more information on the grants made by the group.

~~Lo~~ The Balance Sheet

At 31 December 2024, the balance sheet remained healthy with unrestricted reserves of £191,887 (2023: £195,536), sufficient to allow the group to meet its working capital needs.

Restricted funds totalled £15,482 at 31 December 2024 (2023: £1,724), reflecting small grants from foundations. Trade debtors at year-end were £66,395 (2023: £220,350), representing unrestricted amounts owing from work completed at the end of 2024.

4. Plans for Future Periods

During 2024, the Trustees undertook a Strategy Review to reflect on progress over recent years, including the completion of the successful NJIA/iNJIA programme during the year. The Review included input from Pepal’s external stakeholders, including donors, governments, corporates and NGOs. It noted reduced possibilities for corporate programmes, given changes in the needs of our corporate partners and in the environment for international development work. During 2025 it was decided that Pepal would bring the Krishi Tarang programme to completion during the year.

Looking ahead the Trustees plan to operate at smaller scale, focusing on supporting our existing partner organisation, Pepal Foundation in Tanzania.

5. Going Concern

The trustees are confident that with the good level of reserves and good cost control so that the level of expenditure remains appropriate for the level of income, the group has the resources to develop the new phase of work mentioned above. For this reason they continue to adopt the going concern basis in preparing the financial statements

6. Policies and Objectives

Grant-Making Policies ~~Lo~~

Pepal signs framework agreements with its NGO partners. These outline broad objectives of the partnership. Specific activities are governed by individual contracts.

Pepal Foundation receives grants for supporting beneficiary activities which it either spends directly on project activities or distributes via project agreements with its NGO partners.

7

TRUSTEES’ REPORT - PEPAL FOUNDATION FOR THE YEAR ENDED 31ST DECEMBER 2024

~~Lo~~ Reserves Policies

The trustees aim to hold as unrestricted general funds an amount which is equivalent to one third of the unrestricted annual expenditure in order to provide sufficient cash to meet the operational needs of the organisation. Before accepting any restricted grant, which relies on pre-funding activities, the trustees will assess whether the group has sufficient unrestricted general funds to meet operational needs.

The level of unrestricted general funds was on £191,887 on 31 December 2024 (2023: £195,536) compared to a targeted level of reserves of £95,797 in 2024 and £140,028 in 2023. The targeted level of reserves reduced in 2024 due to the level of activity. The group therefore had, at 31 December 2024, sufficient reserves.

The trustees continue to closely monitor the cash flow needs of the group.

7. Structure, Governance and Management

Governing Document

Pepal Foundation is a company limited by guarantee governed by its Memorandum and Articles of Association dated 1[st] July 2009. It is registered as a charity with the Charity Commission. On 31 December 2024 there were five trustees.

~~LO~~ Appointment and Induction of Trustees

Trustees are appointed by the members as set out in the Memorandum and Articles of Association. The trustees of Pepal Foundation have been selected to bring a range of skills relevant to the charity. Together, the trustees bring skills in grant-making, finance, human resources, international development, and business.

Organisation ~~eT~~

All trustees are members of the Company and the Trustee Board which comprises between three and twelve members. Together, the trustees take overall responsibility for the strategy and finances of the Charity and for ensuring its effective management. The trustees also oversee the performance of the group including Pepal Limited. During the year until 31 December 2024, the trustees of the Charity met regularly. Similarly, the directors of Pepal Limited have met regularly.

Pepal Foundation and Pepal Limited is managed by the Executive Director and five other staff members. Additionally the work of the group is supported by volunteer workers as well as strategic NGO partners, independent specialists and independent academic faculty.

Related Parties ~~Lo~~

None of the trustees received remuneration for their work as trustees of Pepal Foundation.

8

TRUSTEES’ REPORT - PEPAL FOUNDATION FOR THE YEAR ENDED 31ST DECEMBER 2024

~~Lo~~ Pay Policy for Senior Staff

The directors consider that the trustees and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running, and operating the Group on a day to day basis.

The pay of the Executive Director and other senior staff is reviewed regularly and reflects funds available, past contributions to the organisation, the level of risk that the organisation is exposed to, and market rates.

Risk Management

The trustees, together with the directors of Pepal Limited, have identified the risks to which the group is exposed and put in place risk mitigation strategies. During the year, the trustees reviewed the risk management framework and continue to group the risks into five areas:

We continue to place a high emphasis on safeguarding. We have a policy of zero tolerance towards any deliberate harm of others, especially children, by our representatives (whether staff, volunteers, or others). We have safeguarding policies in place and we train our staff and volunteers. We remain committed to transparency around safeguarding issues. In 2024, Pepal didn’t log any safeguarding concerns. No concerns were deemed as ‘serious incidents’ and therefore no reports were made to the Charity Commission. We recognise under-reporting within the sector is a major barrier to tackling sexual exploitation and abuse; we are working with our staff and partners to ensure that all incidences, no matter how minor, are reported. We will continue to monitor, report, and investigate any safeguarding incidents and take action where necessary.

The trustees, together with the directors of Pepal Limited, regularly refresh risk analysis to assess current risks and to put in place risk mitigation strategies. During 2025, the trustees will continue to monitor the risks to which the group is exposed and to review the Group’s risk management strategies.

8. Trustees Responsibilities in Relation to the Financial Statements

The Trustees (who are also directors of Pepal Foundation for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with

9

TRUSTEES’ REPORT - PEPAL FOUNDATION FOR THE YEAR ENDED 31ST DECEMBER 2024

applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company and 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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and group for that period.

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

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In preparing this report, the Trustees have taken advantage of the small companies’ exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the Trustees on 26[th] August 2025

and signed on their behalf, by:

----- Start of picture text -----
)
26 August 2025
----- End of picture text -----

Julie Saunders (Chair of Board)

10

INDEPENDENT EXAMINER’S REPORT – PEPAL FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2024

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 December 2024 which are set out on pages 12 to 22.

Responsibilities and basis of report

As the charity 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 company’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 the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a 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 that in any material respect:

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. 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

  4. 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.

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. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.

Signed: Date: 08.09.2025 WL

James Peach Kreston Reeves LLP Chartered Accountants Second Floor, 168 Shoreditch High Street, London, E1 6RA

11

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES: PEPAL FOUNDATION (Incorporating income and expenditure account) FOR THE YEAR ENDED 31 DECEMBER 2024

Registered Number: 06949484; Charity Number: 1137688

1 Jan to
1 Jan 2024 to 31 Dec 2024 1 Jan 2024 to 31 Dec 2024 1 Jan 2024 to 31 Dec 2024 31 Dec 2023
Notes Unrestricted Unrestricted
Restricted
Funds (£) Funds (£)
Funds (£)		 Total (£) Total (£)
Incoming resources 2
Charitable income 281,808 281,808
15,482		 297,290 435,583
Other income 1,934 1,934
0		 1,934 3,137
Total Incoming resources 283,742 283,742
15,482		 299,224 438,720
Resources expended
Charitable activities 5, 6, 14 287,391 287,391
1,724		 289,115 432,006
Total resources expended 5 287,391 287,391
1,724		 289,115 432,006
Net(outgoing)/incoming resources (3,649) (3,649)
13,758		 10,109 6,714
Net movement in funds (3,649) (3,649)
13,758		 10,109 6,714
Total funds brought forward at 31 Dec 2023 195,536 195,536
1,724		 197,260 190,546
Total funds carried forward at 31 Dec 2024 11 191,887 191,887
15,482		 207,369 197,260

There are no recognised gains or losses other than those disclosed above.

All of the above results derive from continuing activities and there were no acquisitions in the period.

12

CONSOLIDATED BALANCE SHEET: PEPAL FOUNDATION AS AT 31 DECEMBER 2024

Registered Number: 06949484; Charity Number: 1137688

Notes Group (£) Group (£) Charity (£) Charity (£)
31/12/24 31/12/23 31/12/24 31/12/23
Fixed assets
Tangible assets 8 - - - -
Investment in subsidiaries 13 - - 1 1
- - 1 1
Current assets
Amount due from subsidiary 9 - - 39,101 44,777
Other debtors 9 70,025 232,176 3,290 8,720
Cash at bank and in hand 177,470 150,801 173,257 149,576
247,495 382,977 215,648 203,073
Creditors
Amount falling due within 1 year 10 22,462 13,698 8,280 5,814
Deferred income 10a 17,664 172,019 - -
Net current assets 207,369 197,260 207,368 197,259
Total assets less current liabilities 207,369 197,260 207,369 197,260
Funds
Unrestricted general funds 191,887 195,536 191,887 195,536
Restricted funds 15,482 1,724 15,482 1,724
Total funds 11 207,369 197,260 207,369 197,260

The Trustees consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the company to obtain an audit for the period in question in accordance with section 476 of the Act.

The Trustees acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at 31 December 2024 and of its net incoming resources/resources expended for the year then ended in accordance with the requirements of sections 394 and 395 of the Act and which otherwise comply with the requirements of the Companies Act 2006 relating to the financial statements so far as applicable to the company.

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 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements were approved by Trustees on 26[th] August 2025 and signed on their behalf, by:

Julie Saunders (Chair of Board)

The notes on pages 15 to 22 form part of these financial statements.

13

CONSOLIDATED CASH FLOW: PEPAL FOUNDATION AS AT 31 DECEMBER 2024

Registered Number: 06949484; Charity Number: 1137688

Notes For the year ending For the year ending
31 December 2024 31 December 2023
12
Cash flow from operating activities (£)
Net cash provided by operating activities 24,735 5,134
Cash flow from investing activities (£)
Bank interest 1,934 3,137
Change in cash and cash equivalents for the year (£) Change in cash and cash equivalents for the year (£) 26,669 8,271
Cash and cash equivalents brought forward (£) 150,801 142,530
Cash and cash equivalents carried forward (£) 177,470 150,801

14

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PEPAL FOUNDATION FOR THE YEAR ENDING 31 DECEMBER 2024

1. Accounting policies

The principal accounting policies, all of which have applied consistently throughout the period are set out below.

Basis of accounting

The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard 102 (effective 1 January 2019). The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), “Accounting and Reporting by Charities”, published in October 2019, Charities Act 2011, applicable accounting standards and Companies Act 2006.

The Statement of financial activities (SOFA) and Balance Sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary have been consolidated on a line by line basis.

No separate SOFA has been presented for the company alone as permitted by section 408 of the Companies Act 2006.

Public Benefit

Pepal Foundation meets the definition of a public benefit entity under FRS102.

Basis of consolidation

The financial statements consolidate the accounts of Pepal Foundation and all its subsidiary undertakings ('subsidiaries').

The charity has taken advantage of the exemption contained within 408 of the Companies Act 2006 not to present its own Income and expenditure account.

The income and expenditure account for the period dealt with in the accounts of the charity was a surplus of £10,109.

Company status

Pepal Foundation is a company limited by guarantee registered in England and Wales with registered address 167-169 Great Portland Street, Fifth floor, London, W1W 5PF. The members of the company are the Trustees named on page 2 of this report. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

Fund accounting

Unrestricted funds are general funds that are available for use at the trustees’ discretion in furtherance of any of the objectives of the charity.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the company for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

15

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PEPAL FOUNDATION FOR THE YEAR ENDING 31 DECEMBER 2024

Incoming resources

Income from charitable activities includes income recognised as earned (as the related goods or services are provided) under contract or where entitlement to grant funding is subject to specific performance conditions. Grant income included in this category provides funding to support programme activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered.

Deferred Income

Income received in advance is held in deferred income, either as part of unrestricted or restricted funds, and carried forward to future accounting periods to be recognised in income when measurable stages of work have been completed, approved or certified. Any grants restricted to future accounting periods are deferred and recognised in those accounting periods.

Creditors and provisions

Creditors and provisions are recognised when the charity has a present obligation resulting from a past event that will probably result in the transfer funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at the settlement amount after allowing for any trade discounts.

Resources expended

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Governance costs include those incurred in the governance of the charity and are primarily associated with constitutional and statutory requirements of operating the charity.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.

Foreign currencies

Transactions in foreign currencies are recognised at the rate of exchange at the date of the transaction. Monetary assets and liabilities are translated into sterling at the exchange rate on the balance sheet date. All exchange differences are recognised through the statement of financial activities. The charity does not own any non-monetary assets abroad.

Taxation

Irrecoverable VAT is not separately analysed and is charged to the statement of financial activities when the expenditure to which it relates is incurred and is allocated as part of the expenditure to which it relates.

16

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PEPAL FOUNDATION FOR THE YEAR ENDING 31 DECEMBER 2024

The company is a registered charity and is exempt from income tax and corporation tax under s521 of the Income Tax Act 2007 and s466 of the Corporation Tax act 2007.

Tangible fixed assets and depreciation

Tangible assets are stated at cost and depreciated over their useful economic lives at the 33% per annum. All assets with a purchase value above £2,000 are capitalised.

Investments

The investment in the subsidiary is shown at historic cost.

Going concern

The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Significant judgements and estimates

No significant judgements have had to be made by management in preparing these financial statements.

2. Income

Group Income (£) to 31 Dec 2024 to 31 Dec 2023
Restricted Grant Income Kahawa Foundation 15,482 11,817
Total Restricted 15,482 11,817
Programme Income 281,808 423,766
Other income 1,934 3,137
Total Unrestricted 283,742 426,903
299,244 438,720
Charity Income (£) to 31 Dec 2024 to 31 Dec 2023
Restricted Grant Income Kahawa Foundation 15,482 11,817
From Pepal Limited 58,625 71,362
Total Restricted 74,107 83,179
Gift Aid Income from subsidiary 97,319 168,271
Other income 2,295 2,916
173,721 254,636

100% (2023: 99%) of the income of the group derives from outside the UK.

17

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PEPAL FOUNDATION FOR THE YEAR ENDING 31 DECEMBER 2024

3. Surplus of resources for the year

Excess of expenditure over income in the group is stated after charging:

to 31 Dec 2024 to 31 Dec 2024 to 31 Dec 2024 to 31 Dec 2023
Independent Examiners Fees (£) 4,035 4,035

The group surplus for the period was £10,109 (2023: £6,714)

4. Employees

4. Employees
to 31 Dec 2024 to 31 Dec 2023
Total Staff Costs
Wages and salaries (£) 143,465 186,357
Employers National Insurance (£) 3,892 6,665
Employers Pension (£) 1,771 2,996
Total 149,128 196,018
Average number of employees (Pepal Ltd & Pepal Foundation) 2.4 4.1
Directors Emoluments (Pepal Ltd & Pepal Foundation) (£) 59,869 52,925

Key management personnel remuneration in the year was £59,869 (2022: £67,590).

5. Breakdown of cost of charitable activities (£)

The trustees consider that the charitable activity of Pepal is the design and delivery of social impact programmes within cross sector partnerships in low resource settings, in collaboration with businesses, NGOs, civil society and governments, including leadership development, the creation of social innovations and scaling for impact. Accordingly all the costs of the group are attributed to this activity.

Restricted Unrestricted Funds Unrestricted Funds Total Total
Funds Programmes Governance Total 2024 2023
Wages and salaries 1,724 142,636 4,768 147,404 196,018 196,018
Volunteer expenses - - - - 7,314 7,314
Travel & other staff costs - 18,173 - 18,173 75,215 75,215
Other programme & admin - 28,048 - 28,048 54,118 54,118
Grants to partner organisations - 87,235 - 87,235 93,185 93,185
Governance (exc wages) - - 6,531 6,531 6,156 6,156
Total 1,724 276,092 11,299 287,391 289,115 432,006

18

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PEPAL FOUNDATION FOR THE YEAR ENDING 31 DECEMBER 2024

Support costs are made up of total governance costs, which in 2023 were £9,644 including wages and salaries. In 2023 expenditure from restricted funds was £11,922 and unrestricted funds was £420,084.

6. Grants to Partner Organisations (£)

6. Grants to Partner Organisations (£)
2024 2023
Pepal Foundation (Tanzania) 28,901 69,992
Progressive Foundation (India) 58,334 23,194
Total (£) 87,235 93,186

7. Corporation Tax

As a registered charity, the company is not liable to corporation tax on its wholly charitable activities.

8. Tangible Fixed Assets

The charity and group have no fixed assets.

9. Debtors (£)

Group Group Charity
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Trade debtors 66,395 220,350 1,125 459
Amounts due from subsidiary - - 39,101 44,777
Accrued income - 2,083 - 2,083
Prepayments 2,700 4,692 1,350 2,346
VAT debtor 115 524 - -
Advances 815 4,527 815 3,832
Total 70,025
232,176
~~a~~		 42,391 **53,497 **

10. Liabilities- amounts falling due within 1 year (£)

Group Charity
31 Dec 2024 31 Dec 2023 31 Dec 2024 to 31 Dec 2023
Trade creditors 6,807 5,547 210 (427)
Accruals 15,655 8,151 8,070 6,241
Deferred income 17,664 172,019 - -
Total 40,126 185,717 8,280 5,814

19

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PEPAL FOUNDATION FOR THE YEAR ENDING 31 DECEMBER 2024

10a. Deferred income (£)

10a. Deferred income (£)
Group Charity
1 Jan 24 to 1 Jan 23 to 1 Jan 24 to 1 Jan 23 to
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Balance brought forward 172,019) 37,447) - -
Resources deferred during the year 17,644) 172,019) - -
Amounts released from previous
periods (172,019) (37,447) - -
Balance carried forward 17,644) 172,019) - -

11. Statements of Funds (£)

Current Year – 2024
Bal b/fwd Income Expenditure Transfers Bal c/fwd
(£) (£) (£) between (£)
funds(£)
Unrestricted funds
General Fund 195,536 283,742 287,391 0 191,887
Restricted funds
Kahawa Foundation 0 15,482 0 0 15,482
Private donations 1,724 0 1,724 0 0
197,260 299,224 289,115 0 207,369

2024 restricted funds represent funds received from the Kahawa Foundation via the Silicon Valley Community Fund to support our cervical cancer prevention programme in Tanzania.

Previous Year - 2023

Bal b/fwd Income Expenditure Transfers Bal c/fwd
(£) (£) (£) between (£)
funds(£)
Unrestricted funds
General Fund 168,717 426,903 400,084 - 195,536
Designated Business Development Fund 20,000 - 20,000 - -
Restricted funds
Kahawa Foundation 105 11,817 11,922 - -
Private donations 1,724 - - - 1,724
190,546 438,720 432,006 - 197,260
Unrestricted funds 168,717 426,903 400,084 - 195,536

20

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PEPAL FOUNDATION FOR THE YEAR ENDING 31 DECEMBER 2024

12. Reconciliation of net movement in funds to net cash flow from operating activities (£)

For the year ending For the year ending
31 December 2024 31 December 2023
Balance brought forward 150,801 142,530
Net income (expenditure) for the year as per SOFA 10,109 6,714
Adjustment for:
Decrease/(increase) in debtors 162,151 (140,980)
Increase/(decrease) in creditors 8,764 7,965
Increase/(decrease) in deferred income (154,355) 134,572
Net cash provided by operating activities 26,669 8,271
Investment in fixed assets - -
Balance carried forward 177,470 150,801

13. Investment in subsidiaries

The charity, Pepal Foundation (charity number: 1137688) has investments in subsidiaries as follows:

Pepal Limited (£) 1

The investment of £1 represents the whole of the issued share capital, which is made up of £1 ordinary shares of Pepal Ltd, a company incorporated in England and Wales (company number 06950246).

14. Pepal Ltd – Summary profit and loss account (£)

14. Pepal Ltd – Summary profit and loss account (£)
1 Jan 2024 1 Jan 2023
to 31 Dec 2024 to 31 Dec 2023
Income
Programme fee income 282,573 424,446
Total Income 282,573 424,446
Expenditure
Wages and Salaries 92,914 110,112
Other staff costs 5,988 23,779
Travel and accommodation 14,735 33,973
Programme materials and other costs 2,667 6,599
Gift Aid donations to Pepal Foundation 97,319 168,271
Grants to Pepal Foundation 58,625 71,362
Governance including independent examination 3,533 3,669
IT and other administrative costs 6,792 6,681
Total Expenditures 282,573 424,446
Profit on Ordinary Activities - -

21

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PEPAL FOUNDATION FOR THE YEAR ENDING 31 DECEMBER 2024

15. Trustees and other related parties

No non-executive director of Pepal Ltd received emoluments (2023 £nil). No trustees received remuneration for their role in Pepal Foundation (2023: £nil). No trustees received expenses (2023: £nil).

The Charity had no related party transactions during the year under review.

16. Company limited by guarantee

The charity has no share capital but instead is limited by guarantee, each member being committed to contribute a maximum of £1 in the event of a winding up.

17. Operating leases

The group had no annual commitments under non-cancellable operating leases.

18. Analysis of net assets between funds (£)

Current Year - 2024 Unrestricted Restricted Total Funds
Funds Funds
Current Assets 232,013 15,482 247,495
Creditors falling due within 1 year (40,126) 0 (40,126)
Total Net Assets 191,887 15,482 207,369
Previous Year - 2023 Unrestricted Restricted Total Funds
Funds Funds
Current Assets 381,253) 1,724 382,977)
Creditors falling due within 1 year (185,717) - (185,717)
Total Net Assets 195,536) 1,724 197,260)

22