Registered number: 06972024 Charity number: 1139160
SALTMALAWI
(A Company Limited by Guarantee)
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SALTMALAWI (A Company Limited by Guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Details of the Company, its Trustees and Advisers | 1 |
| Trustees' Report | 2 - 7 |
| Independent Examiner's Report | 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 - 11 |
| Notes to the Financial Statements | 12 - 17 |
(A Company Limited by Guarantee)
SALTMALAWI
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023
| Trustees | Stephen James Dorey |
|---|---|
| Brian Gordon Donner (resigned 15 March 2023) | |
| Evan Winter | |
| Malcolm Peter Franks | |
| Peter Taylor | |
| Company registered | |
| number | 06972024 |
| Charity registered | |
| number | 1139160 |
| Registered office | 89 Montrose Avenue |
| Leamington Spa | |
| CV32 7DR | |
| Company secretary | Lorna Harris |
| Bankers | Lloyds Bank Plc |
| Kingdom Bank |
The Trustees present their annual report together with the financial statements of the SALTMALAWI for the year 1 January 2023 to 31 December 2023. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company'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 (FRS102) (effective 1 January 2019).
Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
Structure, Governance and Management
SaltMalawi is an incorporated charity limited by guarantee, not having share capital. It is registered in England and Wales with company number 06972024 and charity number 1139160.
The directors, who all continued in post throughout the year, are: Mr Brian Donner (resigned 15 March 2023) Mr Stephen Dorey Mr Malcolm Franks (Chair) Mr Peter Taylor Mr Evan Winter
Company Secretary: Mrs Lorna Harris (appointed 1st January 2020)
Page 1
(A Company Limited by Guarantee)
SALTMALAWI
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023
2023 was a difficult year. With storms and famine affecting Malawi and Mozambique, the people are hungry and in need. Costs have risen dramatically as inflation bites and the countries’ financial competitiveness internationally is revealed. Fuel is expensive and can be hard to find, so travel and transport are difficult. In Malawi and into Mozambique we support a network of Christian churches known as the Church of the Disciples of Jesus Christ (CDJ). Their leaders have been challenged and key decisions can seem difficult to grasp. Nonetheless the opportunity for the work of the church is very clear. The Rooted in Jesus teaching is taking hold and there are examples of breakthrough.
Back in the UK also, the future is hard to see. SaltMalawi continues to be financially secure and our work is not yet limited by resources. However our income has reduced and we believe that our supporter base is ageing. Meanwhile calls for help from Malawi increase and hunger needs are impossible to meet at scale for a small charity. Our team is in need of reinforcement, yet fresh talent and young volunteers have not appeared so far.
We are challenged, but not dismayed, if a little perplexed. We are considering possibilities for further partnership. We give thanks that the church and the work continues to go forward and we look ahead with hope to 2024.
Summary of the Charity’s Objects and Activities
The Objects for which the Company is established are:
-
to advance the Christian faith primarily, but not exclusively, by providing financial and other such support as may be deemed necessary for proclaiming the Christian gospel in Malawi and such other countries as the directors may from time to time determine and by the enabling and training of disciples of Jesus Christ in such countries.
-
to alleviate poverty and suffering wherever possible and in whatever form it is found in such countries and in particular to offer assistance to people at risk (as defined by the constitutions of such countries) as an expression of such Christian gospel.
The Charity carries out these objects primarily as a grant-making body, supporting defined projects. Funds are disbursed through a process of grant application, authorisation and review. Evidence of satisfactory completion and outcomes is gathered. The main recipient body is the Church of the Disciples of Jesus Christ (CDJ), a registered charity in Malawi.
Public Benefit
The Trustees have referred to the Charity Commission’s general guidance on public benefit when reviewing its aims and objectives. The Charity operates from the UK with outcomes primarily restricted to a range of locations within Malawi and Mozambique (as the border between these 2 countries in quite porous in some locations), so this is where most of the public benefit can be seen. Frequent reports from the field help the Trustees review and evaluate the impact made. As people at risk are fed, and assistance is given for basic living expenses and in some cases school fees, there is relief of poverty with significant groups of people being helped. As the Christian message is taught, people come to faith, churches are established, and communities are transformed. The Trustees consider that people coming to Christian faith is a key public benefit. The work on the ground in Malawi is not however the only area of public benefit. There is evidence of lives changed in people from the UK who have travelled to support and participate in the work.
Review of Activities
Meetings, Policies and Administration
There is an annual regime of meetings, 5 in person (including the AGM) and 8 electronic meetings held via Microsoft Teams. Meetings are typically conducted with non-Trustees in attendance, notably Julian and Caroline Lott, who founded the work in Malawi and were resident there for many years. Meetings are minuted by the Secretary.
Page 2
(A Company Limited by Guarantee)
SALTMALAWI
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Each Quarterly meeting agenda includes a WhatsApp briefing and discussion with John Seda, Chair of CDJ Trustees, when the technology permits.
Trustees review and update procedural policies periodically. The charity’s Safeguarding guidelines are under continuing review and development. A new risk register was established during the year.
A register of Trustees’ interests is maintained and updated annually to help identify possible conflicts. The Trustees have a clear procedure to help avoid potential conflicts of interest on any matter. The Trustees have reviewed and state that there is no Person of Significant Control. No Trustee received any form of remuneration other than the reimbursement of expenses incurred on the Charity’s business.
The Charity’s administration is undertaken by a contracted professional, Mrs. Lorna Harris, who also serves as Company Secretary. Records storage, including email, is managed using Microsoft 365 in a centralised electronic repository with controlled access.
SaltMalawi continues to be a subscribing member of Global Connections, and 31:8 (for Safeguarding purposes).
The Trustees remain keen to increase the number of serving Trustees following resignations over previous years. We recognize that all Trustees are white, male and of retirement age. So the Trustees are also anxious to increase their diversity in gender, age and ethnicity
Income and Expenditure
Funds on hand decreased by almost £22k in 2023, leaving our balance at its lowest point since 2014. Donations received in 2023 at £33,294 were down £1074 on the previous year.
As consistently noted in previous annual reports, funds held have exceeded the needs of our reserves policy for some years. Anticipated short to medium term needs continued to be within our incoming resources. Our finances are secure, despite reduced income, inflationary times and devaluation of the local currency, Kwacha. So, we were able to provide extra-ordinary food and other aid during 2023’s most challenging times in Malawi, following Storm Freddy and the resulting crop losses. Funds totalling £91,048 were held in accounts with Lloyds Bank and Kingdom Bank. A further £2625 was claimed back from HMRC, for receipt in January 2024, relating to Gift Aid donations for which we are very grateful.
As mentioned elsewhere in this report, Julian Lott visited Malawi in July 2023. Funds of almost £1400 were provided to cover the associated costs of flights, insurance and medication/vaccines.
We continue to be grateful for the faithful giving of committed donors including the support of the George Muller Charitable Trust whose donation amounted to just under £7K during the year, including funds channelled from other donors.
How did we spend donor funds?
In 2022 we received a request for a new motorcycle to replace a very old machine at the farm. We agreed that the new motorbike would be available for use by all the farm team on CDJ business, under the guidance of John Seda. In 2023 a new SANLG machine was purchased and began service.
A grant of £10k was made in each of March and August 2023, to meet the costs of administration and expenses incurred by the Malawi team in doing the work of the mission. In March Storm Freddy hit Malawi and Mozambique, dumping 6 months rain in 6 days and battering the area with strong tropical winds. Many people were made homeless and left with nothing, especially in the South of the region. We sent funds which were used to provide and distribute food and domestic utensils to the people of the South. CDJ used the funds to provide 36 pots, 200 buckets, 200 basins, 800 plates, 204 cups, 200 blankets and 161 x 20Kg bags of maize to the most needy.
Page 3
SALTMALAWI
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Storm Freddy contributed to very poor harvests and hunger worsened across Malawi and Mozambique as the year progressed. In response to CDJ’s requests for help, we sent funding in May for purchase of 650 x 50Kg bags maize and associated transport costs.
In total we sent food and other emergency aid to the value of £27,250 during the year.
How do we know that funded projects completed well and expected outcomes were achieved?
SM has worked consistently with CDJ over recent years on proofs of outcomes and continues to do so. This has been an area of considerable focus over that time and we have seen a marked improvement in evidence gathered.
All funds sent result from (usually written) requests from CDJ which express needs and are subsequently documented in a formal Grant Request. SM trustees liaise with CDJ trustees to fully understand the needs, the justification and to confirm that both are in line with our objectives and policies for grant making.
If approved, funds are sent and held in CDJ’s sterling bank account, to be converted to local currency when payment for goods and services become due. Bank statements provide evidence of this part of the process.
CDJ send copies of receipts of purchases and back these up with photographic evidence of work proceeding on the ground. Photos are retained as part of SM Grant Records and selected examples are used in our supporter newsletters.
Following completion of the work covered by the Grant Request, CDJ Trustees send a written letter of thanks which includes an account of work undertaken and beneficiaries.
SaltMalawi’s Treasurer liaises with CDJ’s Administrator, overseeing the whole process.
Communication
We have continued to produce and circulate a printed/digital Newsletter providing up to date news and photographs and highlighting matters for prayer. 4 Newsletters were sent out to 170 supporters by email and 7 by post.
Between newsletters, an email distribution of specific prayer needs is made, responding to requests, events and news received from the field. 8 emails containing Prayer Requests were sent to 63 supporting individuals or organisations.
5 prayer meetings were held in Julian and Caroline Lott’s home with supporters and trustees from the Gloucester area. During the year, these meetings were extended to the other trustees via Microsoft Teams, alongside those physically present in Gloucester.
Two trustees oversee these communications.
Our website carries descriptions, views and news of aspects of our work.
Our Facebook page is primarily used to communicate current news when members of the UK team visit Malawi.
Frequent ad hoc contact is made directly with CDJ Trustees in Malawi using WhatsApp. We find this to be a major benefit in aiding the swift flow of information in both directions. To facilitate this medium a number of smartphones have been provided for the trustees in Malawi.
In response to requests Julian and Caroline make visits to UK churches to present the work of the charity and/or preach from God’s word. In 2023 this included a church in Bristol, a midweek church group in Gloucester and building a new relationship with a church in Newent.
Church of the Disciples of Jesus Christ
We support a network of Christian churches registered as a Malawian charity. The Church of the Disciples of Jesus Christ (CDJ) extends across Malawi and into Mozambique. They have been stretched this year, particularly in the South following the effects of Storm Freddy, associated harvest failure and inevitably hunger.
Page 4
(A Company Limited by Guarantee)
SALTMALAWI
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Many people were forced to leave their homes in search of food and work. Church leaders were lost to the work for several months or even permanently, so church progress and continuity were interrupted.
CDJ Leadership
This was a difficult year for the country and CDJ had its share of the challenges. Remotely supporting the team from the UK has clear limitations.
There have been disappointments in the South and continuing uncertainty in Kasungu. The continuing poor health of the Lilongwe based trustee has weakened the church there. The leadership in the South was also constrained as leaders sought work and food. The trustee from the South left the work permanently. CDJ leaders uncovered leadership problems in Nsanje, but were able to address them, an encouraging sign. It was good to see them address the challenges and appoint a new leadership team for the area.
In other areas too the church and its leaders came under pressure. The Dedza based team has stood firm and, addressing its own leadership challenges, has seen God working dramatically. The church in that area has matured and grown, experiencing renewal and transformation.
Leaders are increasingly getting to grips with the Rooted in Jesus material and teaching is growing across the country.
Administration
The quality of reporting from CDJ has continued to improve albeit slowly. The administrator has been helping with church work away from the farm, so his time is not available as much as expected for his administrative tasks. Accordingly much of the administrative load still falls on CDJ’s chairman, distracting him from church work in particular.
Hunger Relief
Storm Freddy caused chaos in Malawi and Mozambique this year as the violent tropical storm went East over to the coast and, turning round it returned, wreaking havoc twice in a month. Over 200 people were killed and over 200,000 displaced from their homes. Roads, railway bridges and crops were destroyed leaving many without shelter, food or the means to survive. We responded to CDJ’s urgent calls for help, donating funds for food and household items. As a result we dedicated a higher proportion of our spending this year to food aid.
Devasted harvests leave a legacy of hunger, which is expected to continue throughout 2024. So the need will continue and we expect renewed calls for help. Planning for this is difficult but we expect to continue such support in the coming year, if supplies of food can be found.
Education
SaltMalawi and CDJ continued to support secondary education for suitably qualified Malawian children. A limited number of children, including orphans and children of CDJ Trustees are being sponsored through 4 years of secondary education. Work is ongoing to ensure effective management of this new programme. Each case is reviewed on an individual basis. One person is being supported to undertake training in a practical skill, bricklaying.
Malawi Visit
Julian Lott visited Malawi in July 2023. Planning such visits is more difficult in times of travel limitations, hunger, and increased poverty. Julian met with CDJ trustees in arranged meetings and informally, helping with planning, problem solving and coaching. He was involved in planning the use of Rooted in Jesus and the distribution of food aid. He met with and spoke to church congregations from across the nation.
Page 5
SALTMALAWI (A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Several conferences were held when groups of church leaders gathered for a number of days and were taught discipleship material based on the ‘Rooted in Jesus’ books from our partner Mathetes Trust. These sessions serve both as teaching for the leaders themselves and as ‘Teach the Teachers’ training to equip leaders to deliver the content to members of the local churches where they have responsibility. This training is a cornerstone of the strategy to ‘put down roots’ – growing Bible-based maturity and building self-reliance in church members and future leaders.
Achievements against Future Plans from our 2022 Report
-
It is planned that the new administrator will move to the main mission location near Dedza during 2023. He has proven himself to be an extremely important addition in supporting the chair of trustees, as well as relieving him of many administrative duties that have previously curtailed his involvement with the churches.
-
The administrator was not relocated but stayed to help with pastoring the church at Nyombe. He continued his part-time support to the Chair of Trustees, but his planned move to the Dedza farm was postponed. This situation is presently under review.
-
Further rollout of the Rooted-in-Jesus training, though the request for more books is being made difficult through the inability of Royal Mail to accept international packages at this stage. We are investigating the possibility and financial implications of using another courier.
-
Rooted in Jesus teaching continued to become effective and to win over the Malawi team. The need to transport RinJ Book 2 copies this year was met by Julian Lott’s visit.
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Continue to support the construction of church buildings, including investigating a proposal to provide a house for use by national leaders and UK visitors during teaching visits to the South. The proposed property for a new base in the South was withdrawn from sale. Subsequent changes in the South revealed this to have been appropriate for the time being.
-
A programme to provide motorcycles and bicycles to reduce time taken by leaders travelling to outlying churches and remote villages. The request for a motorcycle for the Dedza team was approved in 2022 and acted upon in 2023. There were other requests for motorcycles and bicycles from CDJ. Due to the hunger situation we overspent our budget in 2023 and there was insufficient income during the year to allow us to consider further transport purchases.
-
Further training for CDJ Trustees in bookkeeping and basic governance that is appropriate for the situation in Malawi. Progress was made remotely, albeit limited by the part-time hours available for CDJ’s administrator to perform the role.
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Facilitate many of the above via supporting visits from UK. Julian Lott’s visit as always was a major contribution, but hoped for visits by other team members did not take place.
-
Appoint 1-4 new SaltMalawi Trustees.
-
No appointments were made. However at the time of writing we can report that we are in contact with one possible candidate
Page 6
SALTMALAWI (A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
Structure, governance and management
a. Constitution
SALTMALAWI is registered as a charitable company limited by guarantee and was set up by a Trust deed.
b. Methods of appointment or election of Trustees
The management of the Company is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
-
observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees on 16 May 2024 and signed on their behalf by:
Malcolm Peter Franks
Page 7
(A Company Limited by Guarantee)
SALTMALAWI
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023
Independent Examiner's Report to the Trustees of SALTMALAWI ('the Company')
I report to the charity Trustees on my examination of the accounts of the Company for the year ended 31 December 2023.
Responsibilities and Basis of Report
As the Trustees of the Company (and 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 the Company's accounts 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
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:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
-
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.
Signed:
Dated: 16 May 2024
==> picture [153 x 38] intentionally omitted <==
Kolade Andrew Alli ACMA
10 Gatcombe Gardens West End Hampshire SO18 3NA
Page 8
(A Company Limited by Guarantee)
SALTMALAWI
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023
| Note Income from: Donations and legacies 2 Total income Expenditure on: Charitable activities 3 Total expenditure Net income/(expenditure) Transfers between funds 8 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Restricted funds Unrestricted funds Total funds Total funds 2023 2023 2023 2022 £ £ £ £ 12,155 21,139 33,294 34,368 12,155 21,139 33,294 34,368 935 54,183 55,118 28,291 935 54,183 55,118 28,291 11,220 (33,044) (21,824) 6,077 (25,000) 25,000 - - (13,780) (8,044) (21,824) 6,077 80,549 34,348 114,897 108,820 (13,780) (8,044) (21,824) 6,077 66,769 26,304 93,073 114,897 |
|---|---|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 12 to 17 form part of these financial statements.
Page 9
SALTMALAWI (A Company Limited by Guarantee) REGISTERED NUMBER: 06972024
BALANCE SHEET AS AT 31 DECEMBER 2023
| Fixed assets Note Current assets Debtors 6 Cash at bank and in hand Creditors: amounts falling due within one year 7 Net current assets Total assets less current liabilities Net assets excluding pension asset Total net assets Charity funds Restricted funds 8 Unrestricted funds 8 Total funds |
2,625 91,048 93,673 (600) |
2023 £ - 93,073 93,073 93,073 93,073 66,769 26,304 93,073 |
2,658 113,288 115,946 (1,049) |
2022 £ - 114,897 |
|---|---|---|---|---|
| 114,897 | ||||
| 114,897 | ||||
| 114,897 | ||||
| 80,549 34,348 |
||||
| 114,897 |
The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees on 16 May 2024 and signed on their behalf by:
Malcolm Peter Franks
Page 10
SALTMALAWI (A Company Limited by Guarantee) REGISTERED NUMBER: 06972024
BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2023
The notes on pages 12 to 17 form part of these financial statements.
Page 11
SALTMALAWI
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
SALTMALAWI meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
1.2 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
1.3 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
1.4 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.5 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 12
SALTMALAWI
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1. Accounting policies (continued)
1.6 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
1.7 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs 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.
Page 13
(A Company Limited by Guarantee)
SALTMALAWI
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
| 2. Income from donations and legacies | 2. Income from donations and legacies | |
|---|---|---|
| Restricted | Unrestricted funds Total Total |
|
| funds | General 2023 2022 |
|
| £ | £ £ £ |
|
| Donations | 0 | 17,802 17,802 14,060 |
| Gift Aid tax reclaimed | 0 | 2,633 2,633 2,658 |
| Donations for Joseph Project | 8,995 | 0 8,995 11,196 |
| Donations for Lotts Personal | 600 | 0 600 830 |
| Donations for Mission Fund | 2,560 | 0 2,560 5,410 |
| Interest on cash deposits | 0 | 704 704 214 |
| 12,155 | 21,139 33,294 34,368 |
3. Expenditure on charitable activities
| 3. Expenditure on charitable activities |
|||
|---|---|---|---|
| Restricted Unrestricted funds |
Total | Total | |
| funds General |
2023 | 2022 | |
| £ £ |
£ | £ | |
| Cost of Projects | 935 0 |
935 | 1,735 |
| Cost of Goods Sold | 0 1,250 |
1,250 | 0 |
| Grants Payable | 0 50,235 |
50,235 | 24,068 |
| Internet | 0 44 |
44 | 44 |
| Membership subscription fees | 0 0 |
0 | 314 |
| Bank Charges | 0 75 |
75 | 102 |
| Accountancy fees | 0 0 |
0 | 1,478 |
| Independent examiner's fee | 0 550 |
550 | 550 |
| Professional Fees | 0 2,029 |
2,029 | 0 |
| 935 54,183 |
55,118 | 28,291 |
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(A Company Limited by Guarantee)
SALTMALAWI
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
4. Independent examiner's remuneration
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Fees payable to the Company's independent examiner for the independent | ||
| examination of the Company's annual accounts | 600 | 550 |
5. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL)
During the year ended 31 December 2023, no Trustee expenses have been incurred (2022 - £NIL) .
6. Debtors
| Due within one year Other debtors |
2023 £ 2,625 2,625 |
2022 £ 2,658 2,658 |
|---|---|---|
7. Creditors: Amounts falling due within one year
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Accruals and deferred income | 600 | 1,049 |
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SALTMALAWI
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
8. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds Restricted funds Restricted Fund Total of funds |
Balance at 1 January 2023 £ 34,348 80,549 114,897 |
Income £ 21,139 12,155 33,294 |
Expenditure £ (54,183) (935) (55,118) |
Transfers in/out £ 25,000 (25,000) - |
Balance at 31 December 2023 £ 26,304 66,769 93,073 |
|---|---|---|---|---|---|
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(A Company Limited by Guarantee)
SALTMALAWI
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
8. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds General Funds Restricted funds Restricted Fund Total of funds |
Balance at 1 January 2022 £ 43,972 64,848 108,820 |
Income £ 16,932 17,436 34,368 |
Expenditure £ (26,556) (1,735) (28,291) |
Transfers in/out £ - - - |
Balance at 31 December 2022 £ 34,348 80,549 114,897 |
|---|---|---|---|---|---|
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