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2022-12-31-accounts

Charity registration number 1140248

ALALA

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

ALALA

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Catherine Vaughan-Games Patricia Sergent Naomi Macdonald Charity number 1140248 Principal address 7 St. Peters Street Brighton United Kingdom BN1 4GR

ALALA

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 12

ALALA

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees present their annual report and financial statements for the year ended 31 December 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 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 2019).

Objectives and activities

The charity's objectives are:

To promote and protect the mental health of orphaned children and young people, particularly those who have suffered loss and trauma by natural disasters through the provision of therapeutic support and in other ways as the trustees see fit.

The relief of poverty for the public benefit of orphaned children and young people affected by natural disasters

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Activities

The charity's activities are: Raise funds to purse the objectives. Run a charity shop, selling second hand goods. Collect donations from the local community. Employ and remunerate staff and volunteers for the proper pursuit of the objectives. Accept gifts and donations for the purpose of the objectives. Support an orphanage. To build sustainable orphanages or incorporate sustainability into existing one. In planning our activities each year we have regard to both the Charity Commission's general guidance on public benefit and prevention and relief of poverty for the public benefit.

Achievements and performance

Significant activities and achievements against objectives

Financial review

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Structure, governance and management

The charity is an unincorporated entity which is governed by its constitution, which was adopted on 28 August 2010 and as amended by special resolution on 22 January 2011 and 2 February 2011.

The trustees who served during the year and up to the date of signature of the financial statements were:

Alexandra Poutsma (Resigned 1 January 2023) Catherine Vaughan-Games Patricia Sergent Naomi Macdonald Emma Gomez (Resigned 1 January 2022)

ALALA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees' report was approved by the Board of Trustees.

Patricia Sergent Trustee

17 September 2024

ALALA

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF ALALA

I report to the trustees on my examination of the financial statements of ALALA (the charity) for the year ended 31 December 2022.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 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.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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:

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 financial statements to be reached.

Gareth Murfin FCCA

Dated: 17 September 2024

ALALA

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted Unrestricted
funds funds
2022 2021
Notes £ £
Income from:
Grants 2 10,352 17,203
Charity shop sales 3 19,553 18,166
Total income 29,905 35,369
Expenditure on:
Raising funds 4 15,106 1,372
Charitable activities 5 23,663 29,263
Total expenditure 38,769 30,635
Net income/(expenditure) and movement in funds (8,864) 4,734
Reconciliation of funds:
Fund balances at 1 January 2022 21,922 17,188
Fund balances at 31 December 2022 13,058 21,922

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

ALALA

BALANCE SHEET

AS AT 31 DECEMBER 2022

Notes
Fixed assets
Tangible assets
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within
one year
11
Net current assets
Total assets less current liabilities
Net assets excluding pension liability
The funds of the charity
Unrestricted funds		 2022
£
10,090
6,088
16,178
(4,600)		 £
1,480
11,578
13,058
13,058
13,058
13,058		 2021
£
6,750
14,874
21,624
(731)		 £
1,029
20,893
21,922
21,922
21,922
21,922

The financial statements were approved by the trustees on 17 September 2024

Patricia Sergent Trustee

ALALA

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Charity information

ALALA is an unincorporated charity.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

ALALA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.5 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 are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment

25% straight line method

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

ALALA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2 Income from grants

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Donations and gifts 6,552 5,963
General grants 3,800 11,240
10,352 17,203

3 Income from charitable activities

Charity Charity
shop sales shop sales
2022 2021
£ £
Sale of goods 17,545 18,166
Performance related grants 2,008 -
19,553 18,166
Analysis by fund
Unrestricted funds 19,553 18,166

ALALA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

4 Expenditure on raising funds

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Fundraising and publicity
Advertising 593 97
Other fundraising costs - 932
593 1,029
Trading costs
Depreciation and impairment 607 343
Investment management 13,906 -
Total costs 15,106 1,372

5 Expenditure on charitable activities

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Direct costs
Rates 473 285
Insurance 383 295
Light & heat 1,297 1,005
Telephone 530 650
Postage 147 1,366
Sundries 754 1,212
Rent 7,158 5,000
Travel 447 77
Computer running costs 369 532
Other donations - 5,137
Cleaning 117 386
Accountancy 868 732
Bank charges 100 16
Administration costs 10,001 11,736
Entertaining 52 90
Other charitable expenditure 967 744
23,663 29,263
Analysis by fund
Unrestricted funds 23,663 29,263

ALALA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

6 Net movement in funds 2022 2021
£ £
The net movement in funds is stated after charging/(crediting):
Depreciation of owned tangible fixed assets 607 343

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

8 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

9 Tangible fixed assets

9 Tangible fixed assets
Plant and
equipment
£
Cost
Additions 2,430
At 31 December 2022 2,430
Depreciation and impairment
At 1 January 2022 343
Depreciation charged in the year 607
At 31 December 2022 950
Carrying amount
At 31 December 2022 1,480
At 31 December 2021 1,029
10 Debtors
2022 2021
Amounts falling due within one year: £ £
Other debtors 10,090 6,750

ALALA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

11
Creditors: amounts falling due within one year
Notes
Deferred income
12
Trade creditors
Accruals and deferred income
12
Deferred income
Other deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 January 2022
Resources deferred in the year
Deferred income at 31 December 2022		 2022
£
3,600
-
1,000
4,600
2022
£
3,600
2022
£
3,600
-
3,600
3,600		 2021
£
-
60
671
731
2021
£
-
2021
£
-
-
-
-

13 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 January Incoming Resources At 31
2022 resources expended December
2022
£ £ £ £
General funds 21,922 29,905 (38,769) 13,058
Previous year: At 1 January Incoming Resources At 31
2021 resources expended December
2021
£ £ £ £
General funds 17,188 35,369 (30,635) 21,922

ALALA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

14 Related party transactions

There were no disclosable related party transactions during the year (2021 - none).