# **Shine Charity (A Company Limited by Guarantee)**
**Trustees’ Report and Financial Statements**
**Year ended 31 August 2023**
**Charity Registration Number: 1140511 (England and Wales)**
**Company Registration Number: 07514472 (England and Wales)**
## **Contents**
|**Contents**||
|---|---|
||**Page**|
|Reference and Administrative Details|2|
|Trustees’ Annual Report|3 – 11|
|Independent Examiners’ Report|12|
|Statement of Financial Activities incorporating Income & Expenditure Account|13|
|Balance Sheet|14|
|Notes to the Financial Statements,incorporating:||
|Statement of Accounting Policies|15-16|
|Other Notes to the Financial Statements|17-23|
Shine Charity Trustees’ Report and Financial Statements
Page 1 of 23
## **Shine Charity**
## **Reference and Administrative Details**
## **For the Year Ended 31 August 2023**
|Company Name|Shine Charity|
|---|---|
|Charity Registration Number|1140511 (England and Wales)|
|Company Registration Number|07514472 (England and Wales)|
|Directors and Trustees|Fazlurrehman Hassan|
||Hamid Patel|
||Ismail Adam|
||Mohmed Hanif Sufi|
|Principal and Registered Office|Shadsworth Road|
||Blackburn|
||Lancashire|
||BB1 2HT|
|Accountants|Beever and Struthers|
||Chartered Accountants|
||The Beehive, Lions Drive|
||Shadsworth Business Park|
||Blackburn|
||Lancashire|
||BB1 2QS|
|Bankers|Lloyds Bank|
||Church Street|
||Blackburn|
||Lancashire|
||BB2 1JQ|
|Solicitors|Hill Dickinson|
||1 St Paul’s Square|
||Liverpool|
||Merseyside|
||L3 9SJ|
Shine Charity Trustees’ Report and Financial Statements
Page 2 of 23
## **Shine Charity**
## **Trustees’ Annual Report**
## **For the Year Ended 31 August 2023**
The Trustees (who are also directors of Shine Charity, hereafter referred to as Shine Charity, for the purpose of company law) present their annual report together with the financial statements for the year ended 31 August 2023 and confirm that they comply with the requirements of the Companies Act 2006, the Charities Act 2011 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)).
An independent review of the financial statements has been undertaken by certified external auditors, and no material issues have been raised.
The Trustees have formally approved the Financial Statements and Letter of Representation for external auditors.
## **Structure, Governance and Management**
The organisation is a charitable company (limited by guarantee), incorporated on 2 February 2011 and registered as a charity on 21 February 2011. The charity became operational on 1 March 2012.
The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.
In the event of the company being wound up, each Company Member undertakes to contribute to the assets of the company such amounts as may be required, not exceeding one pound.
The company was established by Light Trust (Charity Reg No: 1140510, Company No: 07496744). Trustees are appointed by the Board of Trustees of the Light Trust on the recommendation of the existing Trustees of the Shine Charity. New Trustees are required to undertake an induction programme to gain an understanding of the vision and processes of the charity.
## **Organisational Structure**
The Board of Trustees of the charity is responsible for the strategic direction of the charity. The Board meets on a quarterly basis to discuss the activities of the charity. The Trustees receive no remuneration or other financial benefits. The charity maintains a register of business interests.
The Board of Trustees is supported by a small team of office bearers for the day to day running of the charity. The charity also has a network of dedicated volunteers from across the Star Academies network.
## **Arrangements for setting pay and remuneration**
Shine Charity does not employ staff. The day-to-day running and administration are managed by volunteers.
## **Objectives and Activities**
## **About Us**
Shine Charity is an education charity working to transform the lives of children and young people. As a charity informed by our values, we believe in the potential of all children, and we seek to realise this through investing in them and empowering them.
Based in Lancashire, Shine Charity is part of the Light Trust. Light Trust is driven by a strong sense of social responsibility and believes firmly in community service and in the transformative power of education to achieve lasting change.
In 2020-21, Shine reviewed and re-focused its charitable activity and scoped out its future work programme accordingly. The COVID-19 pandemic had prompted the charity to target its activities accordingly, and we believe that this remains fully aligned with its charitable purpose and objectives, notwithstanding that
Shine Charity Trustees’ Report and Financial Statements
Page 3 of 23
## **Shine Charity**
## **Trustees’ Annual Report**
## **For the Year Ended 31 August 2023**
the direct impact of the pandemic has receded over time.
## **Our Vision**
Our vision is to transform the lives of young people by investing in them and by empowering them to take social action for a better world. We will:
- Invest in young people: Improving the life chances of children and young people, particularly in areas of disadvantage and deprivation; and
- Empower young people: Supporting engagement in social action by children, young people, families, school/Trust staff and governors.
We want to support children and young people in disadvantaged communities to overcome the challenges and barriers that prevent them from succeeding. We also wish to inspire young people to develop their sense of civic and social responsibility and to believe that they can make a positive difference in the world.
Shine Charity will achieve this vision by supporting a series of focused and specifically designed projects in schools. These projects will be mainly driven by the need to mitigate the effects of poverty, which were exacerbated and illuminated by the COVID-19 pandemic, on disadvantaged families and individuals within local communities. We will continue to provide targeted financial support towards overseas emergency appeals.
## **Our Values**
At Shine Charity, our ethos and values reflect the vision and mission to which we aspire:
- **Service:** Taking responsibility for our community.
- **Teamwork:** Working together in excellence.
- **Ambition:** Aspiring to be our best.
- **Respect:** Treating others as we wish to be treated.
## **Our Approach**
Shine Charity is a charity for young people, delivered by young people.
We believe that children and young people should be at the centre of deciding how we plan, deliver and evaluate our projects. As a result, we:
- Put the interest of children and young people first at all times.
- Help all those in need, regardless of religion, ethnicity or nationality.
- Involve children and young people in deciding which projects should be delivered each year.
- Get children and young people involved in raising funds, awareness and enthusiasm for charitable causes.
- Ask children and young people to evaluate the success of our projects and help us to improve what we do and how we do it.
At Shine Charity, we also believe that sustainable development is vital. We want to help children and young people to help themselves and to develop into independent, confident citizens and leaders of their communities.
Shine Charity Trustees’ Report and Financial Statements
Page 4 of 23
**Shine Charity**
## **Trustees’ Annual Report**
## **For the Year Ended 31 August 2023**
As a result, we:
- Combine short term support with long-term projects that can achieve lasting change.
- Focus not just on poverty, but on the causes of poverty.
- Build peace and condemn violence and extremism of all types.
Accountability and transparency are essential to our long-term mission. We want our donors to be confident that their investment and generosity is making a difference to the lives of others. As a result, we:
- Use our website to share the activities of projects funded by our donors.
- Publish an annual report on how we spent donations and the positive impact that they have had.
- Establish partnerships with leading charities in the UK to deliver projects more effectively and to make a bigger difference.
## **Our Partners**
Our success is based on strong partnerships with some of the leading national and international charities and with a range of organisations at local level.
## **Our Projects**
We support school-based projects and work closely with other charities and voluntary organisations. We seek to make sure that our supporters’ generous donations are being used effectively to help us achieve our purpose of investing in and empowering young people by regularly monitoring and reviewing project outcomes. Previously, in response to the COVID-19 pandemic, Shine established a network of Star Family Hubs in partnership with Star schools. The Hubs have facilitated local projects to address the increased levels of need in communities including food poverty, hygiene poverty, digital poverty and loneliness They will continue to have a vital role, even though the worst effects of the pandemic have now receded, as the impact of poverty persists in the communities in which Shine works. Fundraising campaigns have generated substantial resources to support the work of the Star Family Hubs. The Hubs are founded on the following principles, commitments and pledges:
## **Our Star family**
Our Star family includes: pupils who attend Star schools, their siblings, parents and grandparents; former pupils of Star schools and their families; people and residents who live in Star school neighbourhoods; and Star staff, governors, volunteers and their families.
## **Our commitment**
The Star family will work together to ensure that no member suffers unnecessarily as the result of poverty, deprivation and disadvantage.
## **Our 5 pledges**
- All members of the Star family will be fed.
- All members of the Star family will be able to maintain good personal hygiene.
- All Star families will be able to stay safe and warm in their homes.
- All Star pupils will receive a good quality of education and will be supported to achieve their full potential.
- All children of Star key workers, and vulnerable pupils, will continue to receive excellent care.
Together we are strong. We are Star.
Shine Charity Trustees’ Report and Financial Statements
Page 5 of 23
**Shine Charity**
**For the Year Ended 31 August 2023**
## **Trustees’ Annual Report**
Strategically, we have two priority project areas:
## **1. Investing in young people**
It is Shine’s experience, supported by extensive evidence-based research by, for example, the Sutton and Rowntree Trusts, that the prospects for children to succeed and thrive are significantly lower if they come from deprived or disadvantaged backgrounds. The negative influence of interlocking factors such as poverty, worklessness, poor health, poor nutrition, inadequate housing and crime are significant and real for some pupils in our schools. Too often, as a result of the environments in which they grow up, children and young people do not fulfil their potential and the achievement gap between disadvantaged pupils and their peers grows wider steadily from birth onwards.
Whilst the ultimate solutions to these deep-rooted problems lie with governments, charitable action at a local level can make a difference, and sometimes a critical one. Our approach is therefore that Shine should support and facilitate key interventions for children, young people and families. These include:
- The impact of food poverty on pupils would be addressed by operating breakfast clubs in schools, subsidising school meals and providing food packages when needed.
- Parents who cannot afford school uniforms or educational resources would be supported, either through subsidy or recycling schemes.
- Work would be undertaken with partners to address fuel poverty, ensuring that family homes are heated over the winter months.
- Developing and delivering education projects to improve literacy, numeracy and leadership skills of young people.
- Shine sporting and activity camps would be established to run after school and at weekends in order to address disaffection and low aspirations and enhance their cultural capital. The activity camps will provide comprehensive support to meet the needs and aspirations of disadvantaged children and young people at a time when they are particularly vulnerable. Alongside sporting, cultural and educational activities, food will be provided and staff will be trained in identifying and addressing any additional needs that the participating children and young people may have during school holidays.
- Work would be undertaken with appropriate professionals to help secure appropriate therapeutic support for children who have had adverse or traumatic experiences or who have mental health issues.
- Funds would be raised to assist pupils to progress to university through scholarship and bursary schemes.
- Supporting young people through emergency and crisis situations.
- Addressing digital poverty so that children are able to access learning from home and outside school hours to enhance their in-school education.
## **2. Empowering young people**
There is increasing recognition – based on credible research – that the involvement of young people in social action has a ‘double benefit’. A report by DEMOS in 2015 noted that this consists of: _‘benefits to the individuals taking part through their new skills and personal wellbeing, and to society by benefitting a cause, community or social problem, such as loneliness in old age, social care, educational underachievement, youth unemployment and social cohesion. The evidence for this double benefit continues to expand and strengthen, highlighting the_
Shine Charity Trustees’ Report and Financial Statements
Page 6 of 23
## **Shine Charity**
## **Trustees’ Annual Report**
## **For the Year Ended 31 August 2023**
_potential for a substantial return on investment…., if properly harnessed, the unique contribution of young people taking part in social action could help to tackle some of our most pressing social problems: help to create collaborative and relational public services in health and social care, build more integrated communities, and enable young people to develop character capabilities, employability skills and a robust concern for civic activism and helping others in society._ ’
Working with schools and their communities, Shine will support and facilitate the following social action projects:
- Generations learning together: our experience tells us that inter-generational projects are a particularly valuable and effective social action activity with significant benefits for both pupils and the elderly. Schools would adopt specific care homes in their locality to allow for continuity and deepening of the worth of the interaction between pupils and residents, which would take place on a weekly basis. The range of activities undertaken could include: pupils reading to residents; putting on performances for them; undertaking oral history projects and creating books based on reminiscence; or joint practical activities such as cookery from the periods when residents grew up.
- Establishing and running school food banks: this has been successful in a number of schools and there is now sufficient experience to enable this to be developed and rolled out where there is a demonstrable need.
- Social action in the community: a range of initiatives to address needs in local communities have been effective in a number of schools and the success factors identified are being used to adopt and adapt this approach across the Star network.
## **Where the charity operates**
The charity operates across the world. The Trustees have identified the UK as a key market for the next few years.
## **Developments, Activities and Achievements**
The charity works to transform the lives of children and young people experiencing poverty and deprivation in the UK and across the world. Over the accounting period, Shine has continued to respond to the legacy impact of the COVID-19 pandemic through the Star Family Hubs which it had previously established and to the wider impact of deep-seated poverty in local communities.
During the 2022-23 reporting period, Shine has continued to support members of the Star Family through the Star Family Hubs based in Star schools across England. In addition to sustaining its efforts to address food poverty, hygiene poverty, loneliness, and educational disadvantage, the charity has also responded to cases of individual hardship which have been referred through local networks. The Winter Gift Programme was again both successful and extensive in raising funding for families and households in need, and the charity has acted effectively in response to international emergency appeals for relief in countries such as Afghanistan, Albania, India, Pakistan, Syria, and Turkey.
A new focus over the year has been Shine’s support for the establishment of a world-class book culture in Star schools by increasing disadvantaged pupils’ opportunities to develop their reading and therefore their vocabulary through providing access to an increased range of books.
Over the period of reporting, the charity has secured donations and income totalling c£525k which can be broken down as follows:
For UK-focused charitable activities:
|**Area/focus**|**Income**|
|---|---|
|Bradford Council: distribution of foodpacks|c£22k|
|Birmingham CityCouncil: children’s holiday|c£22k|
Shine Charity Trustees’ Report and Financial Statements
Page 7 of 23
## **Shine Charity**
## **Trustees’ Annual Report**
**For the Year Ended 31 August 2023**
|programmes||
|---|---|
|Duchyof Lancaster: food banks|c£11k|
|Star Read Aloud|c£35k|
|Olive HackneySchool books|C£18k|
|Other|£45k|
## For international charitable activities:
**----- Start of picture text -----**
Area/focus Income
Syria relief appeal c£107k
Afghanistan relief appeal c£4k
Lebanon appeal c£10k
Pakistan flood appeal c£73k
Syria/Turkey earthquake appeal c£162k
Albania appeal c£17k
**----- End of picture text -----**
Expenditure for the accounting period was a total of c£468k, which can be broken down as follows:
## For UK-focused charitable activities:
**----- Start of picture text -----**
Area/focus Expenditure
Bradford: distribution of food packs c£19k
Birmingham: children’s holiday activity programmes c£30k
Duchy of Lancaster: food banks c£11k
Other c£1k
**----- End of picture text -----**
## For international charitable activities:
**----- Start of picture text -----**
Area/focus Expenditure
Syria Covid relief appeal c£103k
Lebanon appeal c£11k
Pakistan flood appeal c£73k
Syria/Turkey earthquake appeal c£162k
Albania appeal c£18k
**----- End of picture text -----**
Shine Charity incurred indirect costs of c£3k in the reporting year, as compared with c£4k in the previous reporting year.
Reserves of c£199k were carried forward as compared with c£143 in the previous reporting year. This is broken down as follows:
**----- Start of picture text -----**
Area/focus Reserves
India Water project c£1k
Bangladesh flood appeal c£1k
Syria covid relief c£12k
Afghanistan relief appeal £5k
Restricted Europe: a combination of winter gifts c£68k
programme, Bradford food, Star read aloud and
OHA books
Unrestricted c£104k
Restricted - Most needy – c£7k
**----- End of picture text -----**
Shine Charity Trustees’ Report and Financial Statements
Page 8 of 23
## **Shine Charity**
## **Trustees’ Annual Report**
## **For the Year Ended 31 August 2023**
## **Future Plans**
## In the UK
The coming year will see the Shine Charity continue to enhance, develop and extend the work of the Star Family Hubs in local communities where disadvantage and deprivation are prevalent. In particular, the charity will seek to increase the involvement of pupils, parents and volunteers in the operation of the Hubs. This will involve establishing further partnerships with organisations in the public, charitable and voluntary sectors and seeking additional sources of funding to support the work of the Hubs in addressing food poverty, hygiene poverty, social isolation and the need to provide activities for children and young people. A longer-term strategy for the establishment of local facilities which can provide opportunities for young people to acquire leadership competences, cultural capital and enhanced aspirations and self-esteem is also in development.
- Shine will continue to build on the development and operation of the Star Family Hubs in the following ways:
- Facilitating partnerships: Shine will broker further partnerships with organisations that are well-placed to add value to the work of the Star Family Hubs. This could include local, regional or national bodies.
- Developing toolkits for project implementation: Shine will continue to refine and update its range of toolkits designed to guide the Hubs through planning, implementing, monitoring and evaluating their projects. The toolkits are tailored to the specifics of each of the types of project outlined above.
- Publicity and marketing: the profiles of each of the Star Family Hubs, and of the Trust-wide initiative
- as a whole, will be extended and enhanced through marketing and publicity activity undertaken by Shine. This will be aimed at local, regional and national exposure, with the aims of attracting further financial support and donations and of fostering partnerships with relevant organisations.
- Fundraising: Shine will continue to raise funding and donations to support the work of the Star Family
- Hubs in the following ways:
- Approaching corporate organisations for financial support or donations of goods
- Securing institutional funding from government, local authorities, other public sector organisations and from trusts and charities
- Identifying and supporting fundraising opportunities for Star pupils to take forward at a local level.
## Internationally
Shine will continue to respond to emergency appeals for humanitarian relief as and when they arise. Trustees will also explore ways in which longer-term involvement in specific educational projects can help further the charity’s objectives.
In order to maximise the effectiveness and efficiency of the charity’s operation, Trustees are examining ways in which its capacity and infrastructure can be developed and consolidated through the establishment of a core team of staff.
## **Risk Management**
A review of the external and internal risks the charity faces is conducted on a regular basis. The charity has developed systems and processes to mitigate these risks. The charity has developed a comprehensive risk register. Internal risks are managed through segregation of duties and checking procedures. The charity has developed a thorough due diligence and quality assurance framework that are regularly reviewed. The Trustees are fully appraised at Board meetings also between meetings of any issues that impact on the management of risk.
## **Financial Review**
The charity’s principal sources of income are individual donors and organisations who respond to our campaigns. During the financial year, the total income of the charity amounted to £525,023 (2022: £210,887). Total expenditure during the current year was £468,321 (2022: £235,111).
The charity had a net surplus of £56,702 (2022: net spend of £24,224) for the year ended 31 August 2023. Total funds carried forward at 31 August 2023 amounted to £199,211, of which £95,855 are restricted funds and
Shine Charity Trustees’ Report and Financial Statements
Page 9 of 23
**Shine Charity Trustees’ Annual Report**
**For the Year Ended 31 August 2023**
£103,356 are unrestricted funds.
Our overall objective in relation to fundraising was to maximise the amount of voluntary income. The Trustees ensured that the overhead and administration costs were low.
## **Investment Policy**
The Investment Policy of the Trustees is to keep its funds in registered banks in the UK and overseas. The Trustees have the power to invest in such projects as they see fit.
## **Volunteers**
In addition to the employees, the charity makes use of Volunteer services from the Board of Trustees and employees of the Star Academies schools, for which no charge is made.
## **Reserves Policy**
The charity had unrestricted reserves (also general free reserves) at 31 August 2023 of £103,356 (2022: £92,462). In addition, the charity held £95,855 (2022: £50,047) of restricted reserves which will be utilised in delivering charitable projects.
The Trustees recognise the need to hold sufficient reserves to allow protection of core activities in the event of unforeseen circumstances. The Trustees agreed a targeted reserves policy of £10,000 which will be reviewed on an annual basis. The trustees are satisfied the charity is on course to maintain this level of reserves during the year ended 31 August 2024.
## **Responsibilities of the Trustees**
The trustees (who are also directors of Shine Charity for the purpose of company law) are responsible for preparing the Trustees’ Annual 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 which gives a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP,
- make judgments and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and;
- 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 accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Shine Charity Trustees’ Report and Financial Statements
Page 10 of 23
## **Shine Charity**
## **Trustees’ Annual Report**
## **For the Year Ended 31 August 2023**
## **Public Benefit**
The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on Public Benefit when reviewing the charity’s aims and objectives and in planning its future activities, which is an annual process.
This report has been prepared in accordance with the special provisions relating to small companies within part 15 of the Companies Act 2006.
The Report of the Trustees was approved on 17th May 2024 and signed on their behalf by:
**______________________** Fazlurrehman Hassan **Trustee**
…………………………………
Shine Charity Trustees’ Report and Financial Statements
Page 11 of 23
## **Shine Charity**
## **Independent Examiners’ Report to the Trustees of Shine Charity**
## **For the Year Ended 31 August 2023**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2023.
## **Responsibilities and basis of report**
As the charity’s trustees of Shine Charity (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 Shine Charity 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:
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.
**Mark Bradley BA FCA**
**Date:** 30 May 2024
Chartered Accountant
Beever and Struthers The Beehive, Lions Drive Shadsworth Business Park Blackburn BB1 1QS
Shine Charity Trustees’ Report and Financial Statements
Page 12 of 23
## **Shine Charity**
## **Statement of Financial Activities**
## **(Incorporating Income and Expenditure Account)**
## **For the Year Ended 31 August 2023**
|||Unrestricted|Restricted|**Total**|Total|
|---|---|---|---|---|---|
|||Funds|General Funds|**2023**|2022|
||**Notes**|£|£|**£**|£|
|**INCOME:**||||||
|Donations and legacies|**3**|44,682|480,341|**525,023**|210,887|
|**Total income**||44,682|480,341|**525,023**|210,877|
|**EXPENDITURE:**||||||
|Expenditure on charitable activities||33,788|434,533|**468,321**|235,111|
|**Total expenditure**|**4**|33,788|434,533|**468,321**|235,111|
|**Net income/(Expenditure)**||10,894|45,808|**56,702**|(24,244)|
|**Reconciliation of funds**||||||
|Funds brought forward at 1 Sept 2022|**12/13**|92,462|50,047|**142,509**|166,733|
|**Funds carried forward at 31 August 2023**||103,356|95,855|**199,211**|142,509|
There are no gains and losses in either the current period or preceding year other than those recognised in the Statement of Financial Activities.
The Statement of Financial Activities has been prepared on the basis that all operations are continuing.
Shine Charity Trustees’ Report and Financial Statements
Page 13 of 23
## **Shine Charity**
## **Balance Sheet**
## **For the Year Ended 31 August 2023**
||**Notes**|**2023**|**2023**|**2022**|**2022**|
|---|---|---|---|---|---|
|||**£**|**£**|**£**|**£**|
|**FIXED ASSETS**||||||
|Tangible Assets|**9**||-||-|
|**CURRENT ASSETS**||||||
|Debtors|**10**|581||-||
|Cash at Bank and in Hand||200,750||148,112||
|||201,331||148,112||
|**CREDITORS**||||||
|Amounts Falling Due Within One Year|**11**|(2,120)||(5,603)||
|**NET CURRENT ASSETS**|||199,211||142,509|
|**NET ASSETS**|||**199,211**||**142,509**|
|**FUNDS**||||||
|Unrestricted Funds|**12**||103,356||92,462|
|Restricted Funds|**13**||95,855||50,047|
|**TOTAL FUNDS**|||**199,211**||**142,509**|
For the financial year ended 31 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
The Financial Statements were approved by the Board of Trustees and authorised for issue on 17th May 2024.
Fazlurrehman Hassan **Trustee**
## **Company number: 07514472**
Shine Charity Trustees’ Report and Financial Statements
Page 14 of 23
## **Shine Charity**
## **Notes to the Financial Statements**
**For the Year Ended 31 August 2023**
## **1. Accounting Policies**
## **Basis of Accounting**
The financial statements of Shine Charity, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the 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) (Charities SORP (FRS 102)), the Charities Act 2011 and the Companies Act 2006.
The charity has taken advantage of the exemption in FRS 102 from the requirement to produce a cash flow statement on the grounds that it qualifies as small.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **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 company 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 Shine 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.
## **Fund Accounting**
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectivities of the charity 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 charity for particular purposes.
## **Grants Payable**
Grants for which there is a legal obligation, or a valid expectation of receipt by the beneficiary at the year end, and for which conditions attaching to their payment have been fulfilled, are accounted for within the Statement of Financial Activities.
## **Incoming Resources**
Voluntary income comprises of donations which are recognised on a receivable basis.
Income tax recoverable is recognised where there is an entitlement, probable receipt and the amount can be measured with sufficient reliability.
Other forms of income are recognised in the Statement of Financial Activities when the charity has entitlement to the funds, it is probable that the income will be received and can be measured with sufficient reliability.
Shine Charity Trustees’ Report and Financial Statements
Page 15 of 23
## **Shine Charity**
## **Notes to the Financial Statements**
## **For the Year Ended 31 August 2023**
## **1. Accounting Policies (continued)**
## **Resources Expended**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes VAT and is reported as part of the expenditure to which it relates:
- Costs of generating funds comprise the costs associated with attracting the income.
- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
- Grants payable are payments made to third parties in the furtherance of the charitable objectives of the company. The grants are accounted for once the offer has been accepted and all obligations under the offer complied with.
- Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.
- Support costs are apportioned on an appropriate basis e.g. as a percentage of direct costs.
## **Tangible Fixed Assets**
Tangible fixed assets are recorded at cost. The Trustees have agreed to set the de-minimis limit to £1,000.
## Depreciation
Depreciation has been provided at the following rates in order to write-down the assets over their estimated useful lives.
Computer Equipment – 25% straight line
## **Leasing**
Rentals payable under operating leases are charged against income on a straight-line basis over the lease term.
Shine Charity Trustees’ Report and Financial Statements
Page 16 of 23
## **Shine Charity**
## **Notes to the Financial Statements**
## **For the Year Ended 31 August 2023**
## **2. Comparative Statement of Financial Activities**
|**Notes**
**INCOME:**
Donations and legacies
**3**
**Total income**
**EXPENDITURE:**
Expenditure on charitable activities
**Total expenditure**
**4**
**Net income / (expenditure)**
**Reconciliation of funds**
Funds brought forward at 1 Sept 2021
**12/13**
**Funds carried forward at 31 August 2022**|Unrestricted
Funds
Restricted
General
Funds
**Total**
**2022**
£
£
**£**
38,344
172,543
**210,887**|
|---|---|
||38,344
172,543
**210,887**|
||9,095
226,016
**235,111**|
||9,095
226,016
**235,111**|
||29,249
(53,573)
**(24,224)**
63,213
103,520
**166,733**|
||92,462
50,047
**142,509**|
## **3. Voluntary Income - Donations**
|Zakah
Lillah
Gift aid|Total
2023
Total
2022
£
£
202,979
138,317
309,844
71,943
12,200
627|
|---|---|
||525,023
210,887|
Shine Charity Trustees’ Report and Financial Statements
Page 17 of 23
## **Shine Charity**
## **Notes to the Financial Statements**
## **For the Year Ended 31 August 2023**
## **4. Expenditure:**
|**Expenditure:**||
|---|---|
|**Expenditure on charitable activities:**
**Direct Project Costs**
Health
Education
Food Program
UK Child Poverty
UK Health
Total Direct Project Costs
**Indirect Costs**
Telephone
Commission and Bank Charges
Professional Fees
Depreciation
Total Indirect Costs
Total Charitable Activities|Global
Programmes
UK
Programmes
Other
**Total**
Total
2023
2023
2023
**2023**
2022
£
£
£
**£**
£
365,954
30,706
-
**396,660**
224,373
-
8,009
-
**8,009**
-
-
60,570
-
**60,570**
6.792
-
-
-
**-**
-
-
-
-
**-**
-|
||365,954
99,285
-
**465,239**
231,165
-
-
746
**746**
577
-
-
216
**216**
489
-
-
2,120
**2,120**
2,880
-
-
-
**-**
-|
||-
-
3,082
**3,082**
3,946|
||365,954
99,285
3,082
**468,321**
235,111|
## **Total resources expended include:**
|||Total|Total|
|---|---|---|---|
|||2023|2022|
|||£|£|
|Depreciation (note 9)||-|-|
|Fees payable to independent examiner for:||||
|`-`|Independent examination|2,120|1,740|
Shine Charity Trustees’ Report and Financial Statements
Page 18 of 23
## **Shine Charity**
## **Notes to the Financial Statements**
**For the Year Ended 31 August 2023**
## **5. Grants Payable**
There were no grants payable at the year-end (2022: £nil).
The Charity makes grants to a number of different partner charities around the world after due consideration and careful assessment of a particular partner charity. The partner charities are used as an extension of SC to help further the objectives of the charity and carry out specific charitable programmes under our direction. All partner charities are subject to due diligence procedures and regular monitoring and reporting. Due to the inherent risks associated with working in some parts of the world, the names of the partner charities have not been disclosed.
## **6. Staff**
## **a. Staff Numbers**
The average number of persons (including senior management team) employed during the year was as follows:
|follows:|||
|---|---|---|
||2023|2022|
||No.|No.|
|**Charitable Activities**|||
|Non-executive Trustees|4|4|
## **b. Higher Paid Staff**
There were no employees whose employee benefits (excluding employer pension costs) exceeded the rate of £60,000 per annum (2022: nil)
## **c. Key management personnel**
The key management personnel of the charity comprise the trustees and the senior management as listed on page 2. The total amount of employee remuneration received by key management personnel for their services to the charity was £nil (2022: nil).
## **7. Related Party Transactions – Trustees’ remuneration and expenses**
No Trustee received any remuneration for his services, nor any reimbursement of expenses during the year.
Other related party transactions involving the Trustees are set out in note 17. Such transactions are only entered into by the charity after undertaking benchmarking and careful consideration of the appropriateness of these transactions.
## **8. Taxation**
As the Company is a registered charity no provision has been made for taxation on the result for the year.
Shine Charity Trustees’ Report and Financial Statements
Page 19 of 23
## **Shine Charity**
## **Notes to the Financial Statements**
**For the Year Ended 31 August 2023**
## **9. Tangible Fixed Assets**
|**Cost**
At 1 September 2022
Additions
Disposals
At 31 August 2023
**Depreciation**
At 1 September 2022
Charged in year
Disposals
At 31 August 2023
**Net Book Value**
At 31 August 2023
At 31 August 2022|Computer
Equipment
Total
2023
£
£
955
955
-
-
-
-|
|---|---|
||955
955|
||955
955
-
-
-
-|
||955
955|
||-
-|
||-
-|
## **10. Debtors**
||2023|2022|
|---|---|---|
||£|£|
|Other debtors|581|-|
## **11. Creditors: Amounts falling due within one year**
|Accruals and deferred income|2023
2022
£
£
2,120
5,603|
|---|---|
||2,120
5,603|
Shine Charity Trustees’ Report and Financial Statements
Page 20 of 23
## **Shine Charity**
## **Notes to the Financial Statements**
**For the Year Ended 31 August 2023**
## **12. Unrestricted Funds**
|**Unrestricted Funds**||||||
|---|---|---|---|---|---|
||Balance at 1|||||
||September|Incoming|Resources||Balance at 31|
||2022|Resources|Expended|Transfers|August 2023|
||£|£|£|£|£|
|General Reserve|92,462|44,682|(33,788)|-|103,356|
|**Total Unrestricted Funds**|92,462|44,681|(33,788)|-|103,356|
|**Unrestricted Funds – previous year**||||||
||Balance at 1|||||
||September|Incoming|Resources||Balance at 31|
||2021|Resources|Expended|Transfers|August 2022|
||£|£|£|£|£|
|General Reserve|63,213|38,344|(9,095)|-|92,462|
|**Total Unrestricted Funds**|63,213|38,334|(9,095)|-|92,462|
## **Unrestricted Funds – previous year**
Included within incomings within the general reserve fund are donations for which the donor has not specified a project or a region. The general reserve will be used to support ongoing projects, where the trustees determine the specific donations do not provide sufficient support.
Shine Charity Trustees’ Report and Financial Statements
Page 21 of 23
## **Shine Charity**
## **Notes to the Financial Statements**
## **For the Year Ended 31 August 2023**
## **13. Restricted Funds**
|**Restricted Funds**||
|---|---|
|**Region**
Asia
South America
Europe
Middle East
Donations for specific projects
**Total Restricted Funds**|Balance at 31
August 2022
Incoming
Resources
Resources
Expended
Transfers
Balance at 31
August 2023
£
£
£
£
£
2,007
77,335
(73,999)
-
5,343
10
-
-
-
10
27,086
126,013
(85,298)
-
67,801
13,764
276,993
(275,236)
-
15,521
7,180
-
-
-
7,180|
||50,047
480,341
(434,533)
-
95,855|
## **Previous year**
|**Region**
Asia
South America
Europe
Middle East
Donations for specific projects
**Total Restricted Funds**|Balance at 31
August 2021
Incoming
Resources
Resources
Expended
Transfers
Balance at 31
August 2022
£
£
£
£
£
853
1,154
-
-
2,007
10
-
-
-
10
6,866
34,557
(14,337)
-
27,086
88,611
136,832
(211,679)
-
13,764
7,180
-
-
-
7,180|
|---|---|
||103,520
172,543
(226,016)
-
50,047|
All restricted funds are for specific projects in particular regions of the world.
The Donations for specific projects restricted fund represents donations received for specific projects for which the donor has not specified a region.
Shine Charity Trustees’ Report and Financial Statements
Page 22 of 23
## **Shine Charity**
## **Notes to the Financial Statements**
**For the Year Ended 31 August 2023**
## **14. Analysis of Net Assets between funds**
Fund balances at 31 August 2023 are represented by:
|Tangible fixed assets
Current assets
Current liabilities
**Total net assets**|Unrestricted
General
Funds
Restricted
Funds
**Total**
**Funds**
£
£
**£**
-
-
**-**
105,476
95,855
**201,331**
(2,120)
-
**(2,120)**|
|---|---|
||103,356
95,855
**199,211**|
## **Analysis of Net Assets between funds – previous year**
Fund balances at 31 August 2022 are represented by:
|Tangible fixed assets
Current assets
Current liabilities
**Total net assets**|Unrestricted
General
Funds
Restricted
Funds
**Total**
**Funds**
£
£
**£**
-
-
**-**
98,065
50,047
**148,112**
(5,603)
-
**(5,603)**|
|---|---|
||92,462
50,047
**142,509**|
## **15. Guarantees**
The company is a company limited by guarantee not having share capital. Every member of the company undertakes to contribute a sum not exceeding £1 if the company has insufficient assets to discharge its liabilities in the event of winding up.
## **16. Ultimate Controlling Party**
The ultimate parent company is Light Trust, a charitable company incorporated in England and Wales.
## **17. Related Party Transactions**
During the year, the charity received donations of £389,867 from Star Academies (2022: £181,279), a connected entity. These donations were generated from the fundraising activities of the pupils of Star Academies.
During the year, the charity has donated £60,570 to Star Academies (2022: £6,550), a connected entity. These donations were paid to Star in relation to purchasing Food Hampers and Laptops for charitable purposes.
Shine Charity Trustees’ Report and Financial Statements
Page 23 of 23