Company registration number: 07458896 Charity registration number: 1146752
Alongside Africa
(A company limited by guarantee) Annual Report and Financial Statements
for the Year Ended 31 December 2022
Alongside Africa
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 4 |
| Statement of Trustees' Responsibilities | 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Financial Statements | 9 to 15 |
Alongside Africa
Reference and Administrative Details
Trustees Mr L Titterton, Chair Mr M Huddart, Treasurer Mrs M Titterton Dr W Nolan Mrs S Nolan Mr A K Sibbald Mrs L E James Charity Registration Number 1146752 Company Registration Number 07458896 The charity is incorporated in England and Wales. Registered Office Oriac House 10 Glenmore Centre Shearway Business Park Folkestone Kent CT19 4RJ Independent Examiner Beresfords Chartered Certified Accountants 1-2 Rhodium Point Spindle Close Hawkinge Folkestone Kent CT18 7TQ
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Alongside Africa
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 December 2022.
Objectives and activities
Objects and aims
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To advance the education of the public in Africa, in particular but not exclusively by assisting communities to establish and maintain new primary schools and promoting leadership and training of effective leaders in Africa, in particular to encourage and support individuals in Africa who are or wish to be in positions of leadership to learn about and develop their leadership skills.
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To relieve sickness and promote and protect good health in Africa for the public benefit.
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To relieve poverty and financial hardship amongst the people and communities in Africa by the provision of training, advice and micro-finance enabling them to establish and grow their own businesses.
Objectives, strategies and activities
Specifically, Alongside Africa runs three programmes in Kabale, Uganda:
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Give-a-child-a-chance - a sponsorship programme to send particularly underprivileged children to school. 2. Amasiko Halfway House - a residential centre where groups of young women (aged 15-21) who have dropped out of formal education can learn a skill and become self sufficient.
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Obumwe Microfinance - a programme through which short term loans are made at a low interest rate to allow womens groups to expand their income generating projects.
Public benefit
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Achievements and performance
Summary
2022 was a significant year for Alongside Africa as the communities we serve, the country and the world started to emerge from the Covid-19 years and plan for the future.
Alongside Africa has been blessed by having a loyal and stable support base for many years, which meant that we were able to emerge from the Covid pandemic without having lost many donors, and where we did lose donors, these were replaced by new ones. Having said that, the global increase in prices that started following the Russian invasion of Ukraine had a strong impact on the Ugandan economy, which in turn adversely impacted our ability to support individuals and communities as we would have liked.
Ugandan Operations
All schools reopened early in the year and the vast majority of sponsored children were able to return to school. The team in Uganda had maintained a watchful eye on all sponsored children and their families, giving much needed assistance where required, with the result that these children returned to school in a better state than many others.
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Alongside Africa
Trustees' Report
The Amasiko Halfway House reopened and we were finally able to graduate the group that had joined the programme more than a year before. A new intake joined and graduated during the year and yet another was halfway through their study by the end of the year. During the year we were able to join up with an accredited and long-established tailoring college in Kabale, which means that the Amasiko Halfway House graduates are now able to leave with a nationally recognised certificate in tailoring skills.
The year also saw us being able to restart the Obumwe Microfinance programme. Following extensive discussions with community leaders in the Ndeego region of Rubanda District we agreed a new community agreement which sees the community taking joint responsibility for defaulting groups and this allowed us to relaunch the programme in May with a pilot of six loans. All six were repaid in schedule at the end of November and we were delighted to see the effective use that had been made of the money. A new tranche of money will be distributed in January 2023 under the name of Obumwe Project Support.
The global increases in prices of fuel and commodities had a greater impact on developing counties than in other parts of the world due to the greater proportion of family’s income that is spent on these and the fact that such families had no disposable income available to cushion the impact of these increases. As a result, levels of poverty increased still further in the least developed countries, of which Uganda was one of the worst affected.
Financial impact
The increases in prices across the board inevitably had a significant impact on us: The cost of school supplies increased, as did the fees charged by all the schools that we use, but our sponsors were unable to increase the charity’s income by the same amount, with the result that the Give a Child a Chance sponsorship programme started running at a deficit. This was funded primarily by diverting unrestricted funds, which have been used to fund the Amasiko Halfway House, to paying school supplies and fees. This of course had a knock-on impact on the sustainability of the Amasiko Halfway House, to the extent that this programme was at risk of being suspended when the Christmas holidays started at the end of November. Following publication of this news on social media we received some very generous donations, which will enable us to continue operating throughout 2023. As these were all one-off donations, the year has to be used to secure longer term funding for the programme.
Due to the ongoing success of the Amasiko Halfway House programme it was decided early in the year to start expanding the facilities to enable us to increase the size of each. This expansion was expected to take a long time, but some very generous one-off donations from individuals allowed us to complete the work within the year. Our capacity has now been increased from 10 to 16-20 girls.
On the numbers, Alongside Africa recoded its highest ever income at £94,671, an increase of 71% on 2022, however, this figure includes one-off donations of £36,108 to expand and run the Amasiko Halfway House, without which we would have recorded a modest 5,7% increase on 2022.
Expenses were kept to a minimum at just 4.8% of total income, but consideration must be given to increasing this in 2023 to fund an increase in regular income.
Board and supporters.
During 2023 we managed to break out of our traditional geographic support base centred on Folkestone, Kent, to establish new groups of supporters in Oxford and Cornwall. We also had a new board member, Louise James, join us from the Oxford group. This is a very welcome development, albeit just a small step towards the growth that we want and need to achieve. As ever, our focus must remain on growth in 2023 and beyond.
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Alongside Africa
Trustees' Report
I have been humbled by the trust placed in me and the others on the board by our longstanding supporters, and by those who came to our aid in 2022. We will continue to endeavour to live up to that trust.
As always, I must express my heartfelt thanks to the small teams of dedicated volunteers and staff in the UK and Uganda that have kept Alongside Africa operating throughout this challenging time. I again salute their dedication and commitment, and most of all, for their love of the people we serve.
Financial review
Policy on reserves
The trustees have decided to hold three months operational costs in reserves in case of sudden loss of income.
Structure, governance and management
Nature of governing document
Memorandum and articles incorporated 02/12/2010 now articles adopted by special resolution dated 21/02/2012.
Recruitment and appointment of trustees
Trustees are appointed by unanimous decision by the current board of trustees.
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
The annual report was approved by the trustees of the charity on 20 September 2023 and signed on its behalf by:
......................................... Mr M Huddart Trustee
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Alongside Africa
Statement of Trustees' Responsibilities
The trustees (who are also the directors of Alongside Africa 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), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". The report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies.
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 charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable 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 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 corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the trustees of the charity on 20 September 2023 and signed on its behalf by:
......................................... Mr M Huddart Trustee
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Alongside Africa
Independent Examiner's Report to the trustees of Alongside Africa ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2022.
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 Alongside Africa 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.
...................................... Daniel Payne FCCA Beresfords Chartered Certified Accountants 1-2 Rhodium Point Spindle Close Hawkinge Folkestone Kent CT18 7TQ
20 September 2023
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Alongside Africa
Statement of Financial Activities for the Year Ended 31 December 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 3 Investment income 4 Total income Expenditure on: Charitable activities 5 Other expenditure 6 Total expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 15 Income and Endowments from: Donations and legacies Total income Expenditure on: Charitable activities Other expenditure Total expenditure Net expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted funds £ 92,159 12 92,171 (87,342) (303) (87,645) 4,526 4,526 16,637 21,163 Note 3 5 6 15 |
Restricted funds £ 2,500 - 2,500 (2,500) - (2,500) - - - - Unrestricted funds £ 55,320 55,320 (65,363) (404) (65,767) (10,447) (10,447) 27,084 16,637 |
Total 2022 £ 94,659 12 |
|---|---|---|---|
| 94,671 | |||
| (89,842) (303) |
|||
| (90,145) | |||
| 4,526 | |||
| 4,526 16,637 |
|||
| 21,163 | |||
| Total 2021 £ 55,320 |
|||
| 55,320 | |||
| (65,363) (404) |
|||
| (65,767) | |||
| (10,447) | |||
| (10,447) 27,084 |
|||
| 16,637 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 15.
The notes on pages 9 to 15 form an integral part of these financial statements. Page 7
Alongside Africa
(Registration number: 07458896) Balance Sheet as at 31 December 2022
| Note Fixed assets Tangible assets 11 Current assets Debtors 12 Cash at bank and in hand 13 Creditors: Amounts falling due within one year 14 Net current assets Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 15 |
2022 £ 910 135 20,418 20,553 (300) 20,253 21,163 21,163 21,163 |
2021 £ 1,213 - 15,724 |
|---|---|---|
| 15,724 (300) |
||
| 15,424 | ||
| 16,637 | ||
| 16,637 | ||
| 16,637 |
For the financial year ending 31 December 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
The financial statements on pages 7 to 15 were approved by the trustees, and authorised for issue on 20 September 2023 and signed on their behalf by:
......................................... Mr M Huddart Trustee
The notes on pages 9 to 15 form an integral part of these financial statements. Page 8
Alongside Africa
Notes to the Financial Statements for the Year Ended 31 December 2022
1 Charity status
The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.
The address of its registered office is: Oriac House 10 Glenmore Centre Shearway Business Park Folkestone Kent CT19 4RJ
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Basis of preparation
Alongside Africa 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 notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Donations and legacies
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
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Alongside Africa
Notes to the Financial Statements for the Year Ended 31 December 2022
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Investment income
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
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.
Grant provisions
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £250.00 or more are initially recorded at cost.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Motor vehicles
Depreciation method and rate 25% on reducing balance
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Alongside Africa
Notes to the Financial Statements for the Year Ended 31 December 2022
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Financial instruments
Classification
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
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Alongside Africa
Notes to the Financial Statements for the Year Ended 31 December 2022
3 Income from donations and legacies
| Donations and legacies; Gift aid reclaimed Donations Grants, including capital grants |
Unrestricted funds General £ 10,038 82,121 - 92,159 |
Restricted funds £ - - 2,500 2,500 |
Total 2022 £ 10,038 82,121 2,500 94,659 |
Total 2021 £ 4,723 47,097 3,500 |
|---|---|---|---|---|
| 55,320 |
4 Investment income
| Interest receivable and similar income; Interest receivable on bank deposits Total for 2022 |
Unrestricted funds General £ 12 12 |
Total funds £ 12 |
|---|---|---|
| 12 |
5 Expenditure on charitable activities
| Note Grant funding of activities Direct costs Training Insurance Computer software and maintenance costs Sundry expenses Travel expenses Accountancy fees Bank charges Advertising Governance costs 7 |
Unrestricted funds General £ 82,938 608 - 108 284 48 2,345 - 711 - 300 87,342 |
Restricted funds £ 2,500 - - - - - - - - - - 2,500 |
Total 2022 £ 85,438 608 - 108 284 48 2,345 - 711 - 300 89,842 |
Total 2021 £ 61,634 1,075 202 269 310 13 - 300 818 442 300 |
|---|---|---|---|---|
| 65,363 |
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Alongside Africa
Notes to the Financial Statements for the Year Ended 31 December 2022
6 Other expenditure
| Note Depreciation, amortisation and other similar costs |
Unrestricted funds General £ 303 303 |
Total 2022 £ 303 303 |
Total 2021 £ 404 |
|---|---|---|---|
| 404 |
7 Analysis of governance and support costs
Governance costs
| Independent examiner fees Independent examiners fee 8 Net incoming/outgoing resources Net incoming/(outgoing) resources for the year include: Depreciation of fixed assets |
Unrestricted funds General £ 300 300 |
Total 2022 £ 300 300 2022 £ 303 |
Total 2021 £ 300 |
|---|---|---|---|
| 300 | |||
| 2021 £ 404 |
9 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
10 Taxation
The charity is a registered charity and is therefore exempt from taxation.
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Alongside Africa
Notes to the Financial Statements for the Year Ended 31 December 2022
11 Tangible fixed assets
| Cost At 1 January 2022 At 31 December 2022 Depreciation At 1 January 2022 Charge for the year At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 12 Debtors Prepayments 13 Cash and cash equivalents Cash on hand Cash at bank 14 Creditors: amounts falling due within one year Accruals |
Motor vehicles £ 3,000 3,000 1,787 303 2,090 910 1,213 2022 £ 33 20,385 20,418 2022 £ 300 |
Motor vehicles £ 3,000 3,000 1,787 303 2,090 910 1,213 2022 £ 33 20,385 20,418 2022 £ 300 |
Total £ 3,000 3,000 1,787 303 2,090 910 1,213 2022 £ 135 |
|
|---|---|---|---|---|
| 3,000 | ||||
| 1,787 303 |
||||
| 2,090 | ||||
| 910 | ||||
| 1,213 | ||||
| 2022 £ 33 20,385 20,418 2022 £ 300 |
||||
| 2021 £ 33 15,691 |
||||
| 15,724 | ||||
| 2021 £ 300 |
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Alongside Africa
Notes to the Financial Statements for the Year Ended 31 December 2022
15 Funds
| 15 Funds | ||||
|---|---|---|---|---|
| Unrestricted funds General Restricted funds Total funds Unrestricted funds General |
Balance at 1 January 2022 £ 16,637 - 16,637 Balance at 1 January 2021 £ 27,084 |
Incoming resources £ 92,171 2,500 94,671 Incoming resources £ 55,320 |
Resources expended £ (87,645) (2,500) (90,145) Resources expended £ (65,767) |
Balance at 31 December 2022 £ 21,163 - |
| 21,163 | ||||
| Balance at 31 December 2021 £ 16,637 |
16 Analysis of net assets between funds
| 16 Analysis of net assets between funds | ||
|---|---|---|
| Tangible fixed assets Current assets Current liabilities Total net assets Tangible fixed assets Current assets Current liabilities Total net assets |
Unrestricted funds General £ 910 20,553 (300) 21,163 Unrestricted funds General £ 1,213 15,724 (300) 16,637 |
Total funds at 31 December 2022 £ 910 20,553 (300) |
| 21,163 | ||
| Total funds at 31 December 2021 £ 1,213 15,724 (300) |
||
| 16,637 |
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