REGISTERED COMPANY NUMBER: 07375179 (England and Wales) REGISTERED CHARITY NUMBER: 1140426
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020
FOR
SPS CAMBODIAN FOUNDATION LIMITED
TaxAssist Accountants 126 Southdown Road Harpenden Herefordshire AL5 1QQ
SPS CAMBODIAN FOUNDATION LIMITED CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020
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Report of the Trustees 1 to 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8 to 9
Notes to the Financial Statements 10 to 13
Detailed Statement of Financial Activities 14
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SPS CAMBODIAN FOUNDATION LIMITED
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2020
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 September 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).
OBJECTIVES AND ACTIVITIES
The objectives of the charity are :
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To advance education by sponsoring specific individuals in Cambodia through secondary and tertiary education.
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To enable the advancement of the lives of students in Cambodia, who are socially or economically disadvantaged, to ensure they reach their potential by sponsoring them through secondary and tertiary education or vocational training, whichever is most appropriate for the individual students. The aim is also to assist them gain their first employment opportunity.
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To promote such other purposes as are exclusively charitable under the laws of England and Wales for the benefit of students in Cambodia as the Trustees determine from time to time.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. During the year to 30th September 2020 Cambodia, like the rest of the world, was severely impacted by the Covid Pandemic. This has disrupted the education process for all our students and in some cases delayed the studies of certain students. However, the trustees are pleased to state that all students have continued with online studies where possible and have remained focussed on following their goals through this difficult time. None of our students or carers have contracted Covid-19 during the period. Some of our graduates who had started work found the economic environment challenging at certain points in the year and the trustees decided to provide additional financial support to those graduates as and when it was deemed necessary and appropriate.
At present there are thirteen students who are being supported and live in the four houses used by the charity (three houses are on long leases and one is provided free of charge). All these students are at various top class universities within Phnom Penh including the Royal University of Phnom Penh, Pannasastra University, the Royal University of Law and Economic and the International Foreign Language University. All the students living in the houses form a part of a family unit and each house is managed by a carer who has been known to at least one of the trustees for between 9-15 years. The students have predominantly come from the Good Shepherd Orphanage or from three communities in the provinces of Bantam Meanchay, Battambang and Kratie.
The success of the charity in achieving its goals has been seen over the past five years when fifteen students have completed their studies and have found employment well above the level they may have normally expected. In each case the graduates have found employment in the career of their choice and are now self sufficient although several continue to live in the houses from choice.
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SPS CAMBODIAN FOUNDATION LIMITED
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2020
All the remaining students continue to progress well in their educational institutions and the trustees were pleased to note at a recent visit how the students have continued to mature over the past 3-4 years. For the undergraduates who remain in the houses the charity provides support for all their needs including a safe and caring living environment, nutritious food, a small allowance, clothes and full cover of the cost of education. Additionally, both the carers and the trustees provide advice and guidance to the students on all aspects of their lives. As all of the students have either come from an institution or from a deprived family background, it has been essential that they could continue their educational and personal development in a safe, caring and supportive environment.
In addition to supporting the students in the houses the charity also supports three students from poor backgrounds who aspired to go to university but whose parents had been unable to support their dream of tertiary education. The main support for these students is the provision of funds to cover all educational costs, laptops and transport to university. In addition a small allowance is provided where appropriate.
As part of the charity's objective to promote other charitable activities the charity has supported two families in provincial towns near Phnom Penh in Svay Pak and Takmao for a number of years. The families consist of a mother and four children each and the charity provides allowances and also covers all educational costs of the children. In both cases the mothers support two orphans within their own family unit.
To ensure that the objectives are met the trustees make regular visits to Cambodia. During the past 24 months three of the five trustees have visited Cambodia at least once. In addition, there is an annual charity long weekend break to which all students and supported families are invited and which the trustees aim to attend. This provides an excellent opportunity to reward the students for their ongoing hard work and commitment and provides the trustees with the chance to spend time with the students.
Financial Review
For the year commencing 1st October 2019 the charity has changed its policy such that it will build unrestricted cash reserves, which have not been designated for a specific use, to a level equivalent to six months expenditure. This has been revised downward from twelve months historically given the level of committed funding that now exists and the changing age profile of the beneficiaries. The trustees consider that cash 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. Cash balances stood at GBP 59,610 at the end of the financial year.
During the year there was an accounting deficit of GBP 11,469 which the Trustees felt was a satisfactory result for the charity, in testing financial conditions and given its cash reserves. Debtors of GBP 17,276 existed at the year end and this amount was received within three months of the year end. The Trustees established a USD account for the charity in order to mitigate the FX risk from donations received in USD and better manage the FX risk for donations received in GBP.
Costs for food, clothing, health and education for the students being cared for in the houses were GBP 57,879 and the cost for the support of additional families was GBP 20,283. Property maintenance and general household cost amounted to GBP 11,142 The remaining costs of GBP 16,903 were related to special events organized by the carers for the community and one-off items. In addition GBP12,355 was spent during the year to support the primary school children in a community in Kratie province.
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SPS CAMBODIAN FOUNDATION LIMITED
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2020
Cash balances were GBP 59,610 and were held with six separate bank accounts and cash funds. The Trustees spend time reviewing the annual budget and reserve policy to enable the Charity to meet its financial challenges as a viable charity. The Trustees remain very focused on the financial robustness of the Charity and continue to look for new and sustainable sources of funds.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is a company limited by guarantee, incorporated on 14 September 2010 and registered as a charity on 15 February 2011. The charity was established under its memorandum and articles of associates. In the event of the charity being wound up, members may be required to contribute an amount not exceeding £10.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr Peter C Slater Ms Victoria Slater Ms Hilka Schmitz Mr Guy Hemington Mr Mark Petterson
The company does not employ any staff in the UK but does employ several carers in Cambodia. All the activities associated with fund raising and financial management are performed out of the UK by the five trustees. On the ground in Cambodia, the students live in one of four houses where each house is headed by a family carer who receives an allowance to cover the costs of providing food and accommodation for the student supported by the Charity.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The primary risks are financial and 'human'. Financial risk is directly managed by the trustees in the UK. Monies are disbursed to Cambodia according to an assessment of standard costed monthly requirements (e.g. for food, accommodation, transport, education). Any extraordinary items require pre-approval from the trustees and, where possible given local circumstances, are supported by receipts.
The 'human' risk relates to the physical and emotional welfare of the students in Cambodia. This risk was one of the primary drivers for adopting an approach whereby the students live within, and as part of, an existing family unit. The trustees believe this is the key to ensuring a level of appropriate welfare, emotional and physical support, encouragement with studies and general well-being.
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SPS CAMBODIAN FOUNDATION LIMITED
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2020
Plans for the future
It has always been the intention of the trustees that the charity would support a defined set of students from specific backgrounds and that there would be a limit of a total number of 30 students at any point in time. In the coming few years there is one more sibling of existing students who are likely to be sponsored by the charity. There are no plans beyond that to support any further students.
In the next three years approximately 90% of the students will have completed their tertiary education and are expected to be in full time employment. As a policy the charity supports each student for the first six months post graduation as they seek employment and a stable working environment. In addition, as the houses are on long leases, the students are also offered rent free accommodation post graduation given their family circumstances.
It is anticipated that the two families in provincial towns near Phnom Penh will be supported for the foreseeable future.
Over the past year the trustees have agreed to continue to support a small extremely poor community in Kratie province, the home province of a number of the students living in the houses and also the home village of the manager of the charity in Cambodia. The charitable activity is focussed on this particular community with the aim of ensuring that the students at the local primary school can have an effective primary education, which they do not receive at present.
To date, the charity has provided approximately 50 students with school uniforms, books, pencils and other equipment as well as successfully petitioning the local officials to provide a second teacher for the school. During 2018 the charity provided the community with a fresh water source and the school with simple toilet facilities. In 2019, the charity built and kitted out a library facility for the local primary school.
In conclusion, the trustees remain committed to the students currently supported by the charity and their siblings to ensure they can complete their full educational careers and enter society as young adults focussed on improving their own lives, those of their families and of the communities around them. The successes of the past four years are a testament to the approach that has been developed and refined over the past nine years.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 07375179 (England and Wales)
Registered Charity number 1140426
Registered office
61 West Common Harpenden Hertfordshire AL5 2LD
Trustees
Mr G Hemington Mr M Petterson Ms H Schmitz Ms V Slater Mr P C Slater
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SPS CAMBODIAN FOUNDATION LIMITED
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2020
REFERENCE AND ADMINISTRATIVE DETAILS
Company Secretary Mr P C Slater
Independent Examiner
TaxAssist Accountants 126 Southdown Road Harpenden Herefordshire AL5 1QQ
Approved by order of the board of trustees on 21 January 2021 and signed on its behalf by:
Mr P C Slater - Trustee
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SPS CAMBODIAN FOUNDATION LIMITED
Independent examiner's report to the trustees of Sps Cambodian Foundation Limited ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 September 2020.
Responsibilities and basis of report
As the charity's 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 charity'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
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:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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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
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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.
TaxAssist Accountants 126 Southdown Road Harpenden Herefordshire AL5 1QQ
28 January 2021
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SPS CAMBODIAN FOUNDATION LIMITED
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2020
| 30.9.20 | 30.9.19 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| fund | funds | ||
| Notes | £ | £ | |
| INCOME AND ENDOWMENTS FROM | |||
| Donations and legacies | 118,141 | 136,813 | |
| EXPENDITURE ON | |||
| Charitable activities | 129,610 | 152,303 | |
| NET INCOME/(EXPENDITURE) | (11,469) | (15,490) | |
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | 153,165 | 168,656 | |
| TOTAL FUNDS CARRIED FORWARD | 141,696 | 153,166 |
The notes form part of these financial statements
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SPS CAMBODIAN FOUNDATION LIMITED
BALANCE SHEET 30 SEPTEMBER 2020
| 30.9.20 Unrestricted fund Notes £ FIXED ASSETS Tangible assets 4 66,730 CURRENT ASSETS Debtors 5 17,276 Cash at bank and in hand 59,610 76,886 CREDITORS Amounts falling due within one year 6 (1,920) NET CURRENT ASSETS 74,966 TOTAL ASSETS LESS CURRENT LIABILITIES 141,696 NET ASSETS 141,696 FUNDS 7 Unrestricted funds 141,696 TOTAL FUNDS 141,696 |
30.9.19 Total funds £ 76,081 22,390 56,615 79,005 (1,920) 77,085 153,166 153,166 153,166 153,166 |
|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 2020 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
continued...
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SPS CAMBODIAN FOUNDATION LIMITED
BALANCE SHEET - continued 30 SEPTEMBER 2020
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 28 January 2021 and were signed on its behalf by:
Mr P C Slater - Trustee
The notes form part of these financial statements
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SPS CAMBODIAN FOUNDATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020
1. ACCOUNTING POLICIES
BASIS OF PREPARING THE FINANCIAL STATEMENTS
The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
INCOME
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
EXPENDITURE
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Land and Building 1 : Over the useful life of 16 years (SLM) Land and Building 2 : Over the useful life of 15 years (SLM)
TAXATION
The charity is exempt from corporation tax on its charitable activities.
FUND ACCOUNTING
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
continued...
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SPS CAMBODIAN FOUNDATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2020
2. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| 30.9.20 | 30.9.19 | |
|---|---|---|
| £ | £ | |
| Depreciation - owned assets | 9,351 | 9,350 |
3. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 30 September 2020 nor for the year ended 30 September 2019.
TRUSTEES' EXPENSES
There were no trustees' expenses paid for the year ended 30 September 2020 nor for the year ended 30 September 2019.
4. TANGIBLE FIXED ASSETS
| COST At 1 October 2019 and 30 September 2020 DEPRECIATION At 1 October 2019 Charge for year At 30 September 2020 NET BOOK VALUE At 30 September 2020 At 30 September 2019 |
Freehold property £ 145,803 |
|---|---|
| 69,722 9,351 |
|
| 79,073 | |
| 66,730 | |
| 76,081 |
continued...
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SPS CAMBODIAN FOUNDATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2020
| 5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other debtors 6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Accrued expenses 7. MOVEMENT IN FUNDS Unrestricted funds General fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund TOTAL FUNDS |
30.9.20 30.9.19 £ £ 17,276 22,390 30.9.20 30.9.19 £ £ 1,920 1,920 Net At movement At 1.10.19 in funds 30.9.20 £ £ £ 153,165 (11,469) 141,696 153,165 (11,469) 141,696 Incoming Resources Movement resources expended in funds £ £ £ 118,141 (129,610) (11,469) 118,141 (129,610) (11,469) |
|---|---|
continued...
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SPS CAMBODIAN FOUNDATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2020
7. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund TOTAL FUNDS Comparative net movement in funds, included in the above are as follows: Unrestricted funds General fund TOTAL FUNDS |
Net At movement At 1.10.18 in funds 30.9.19 £ £ £ 168,656 (15,490) 153,166 168,656 (15,490) 153,166 Incoming Resources Movement resources expended in funds £ £ £ 136,813 (152,303) (15,490) 136,813 (152,303) (15,490) |
|---|---|
8. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 30 September 2020.
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SPS CAMBODIAN FOUNDATION LIMITED
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2020
| 30.9.20 | 30.9.19 | |
|---|---|---|
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Donations and legacies | ||
| UF Donations and gifts | 118,141 | 136,813 |
| Total incoming resources | 118,141 | 136,813 |
| EXPENDITURE | ||
| Charitable activities | ||
| UF Charitable expenditure | 129,610 | 152,303 |
| Total resources expended | 129,610 | 152,303 |
| Net expenditure | (11,469) | (15,490) |
This page does not form part of the statutory financial statements
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