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2020-12-31-accounts

Lalibela Trust

Charity No. 1147147

Trustees' Report and Unaudited Accounts

31 December 2020

Lalibela Trust Contents

Pages
Trustees' Annual Report 2 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6 to 7
Statement of Cash flows 8
Notes to the Accounts 9 to 14
Detailed Statement of Financial Activities 15 to 16

Page 1

Lalibela Trust Trustees Annual Report

The Trustees present their report with the unaudited financial statements of the charity for the year ended 31 December 2020.

REFERENCE AND ADMINISTRATIVE DETAILS

Charity No. 1147147

Principal Office

The Coach House Trispen Truro Cornwall TR4 9BB

Trustees

The following Trustees served during the year:

R. Gray A.C. Sandbrook A.M. Sharp E.M.F. Sharp H.C. Sharp J.C. Sharp J.H.C. Sharp

Accountants

David Johnson Concord, South Town Lane West Pennard Glastonbury, Somerset England BA6 8NS

Page 2

Lalibela Trust Trustees Annual Report

Trustees Report

The flagship maternity unit in the grounds of Lalibela Hospital finally opened in July 2020. The unit has performed well with over 500 deliveries and much improved performance in maternal and neonatal care. 20% of deliveries have been Caesarian sections, which equates to the United Kingdom rate.

Maternity provision, prior to opening of the maternity unit, was grossly inadequate consisting of three rooms – a labour ward, a second for immediate post-delivery rest plus a delivery room containing three couches and very basic equipment.

The new L-shaped stand-alone, self-contained unit – the size of two tennis courts – has in-patient and out-patient facilities. Out-patients has a consulting room, scanner room, pharmacy, laboratory and family planning room. A termination of pregnancy room is a late addition. In-patients contains a labour and delivery room with two operating theatres. There are five wards - ante-natal, post-natal and Caesarian section wards, plus two intensive care wards specifically for gravely ill women and neo-nates.

The unit is well staffed with experienced obstetricians, gynaecologists and anaesthetists, plus nineteen midwives, fifteen nurses and six intensive care nurses.

Festival Medical Services, following their 2018 visit, hope to return to improve critical management at first contact with the mother in labour and on arrival at the maternity unit.

The Exeter/Truro Medical School staff and student link to Lalibela have had two successful visits in March 2019 and March 2020. They are keen to assist with staff training and introducing “best practice”.

Norman and Carole, our partners, continue their very successful work. However, the serious civil unrest in neighbouring Tigray, the Covid pandemic and poverty in Lalibela – a town almost totally dependent on tourism – have resulted in major upset. Poverty now is compounded by IDPs fleeing from Oromia and some from Tigray, for whom Lalibela has been attractive because of its deep religious connections and churches for sanctuary. Lalibela Trust has significantly contributed financially to food aid. Our much-respected Ethiopian Project Manager, Derebe, oversees fair and equitable food distribution.

Millfield School, Somerset continues to fund projects at Lalibela High School. A UK donor funds food provision for 6 students who have attained the necessary academic standard to enter Lalibela High School but are unable to afford food.

Health Posts, Spring Improvement Projects and School classrooms are Norman and Caroles`s special focus.

Health Posts 16 completed serving a total of around 148,000 people . Frustratingly, work on a new Health Post in Meket Woreda continues to be delayed by a dispute between residents about its location.

Spring Improvement projects 128 completed; 6 failed (but 2 have been rebuilt); 9 under construction. Total beneficiaries 53,000. Work continues, but slowly because of the security risks and cement availability.

Schools 22 classrooms built. At an average of 40 children per shift, 2 shifts per day, the number of children benefitting is around 49,000. 3 shifts per day to allow social distancing; retired teachers re-engaged, etc. Hugh and Catherine, Norman and Carole plan to visit in October.

Page 3

Lalibela Trust Trustees Annual Report

Statement of trustees' responsibilities in relation to the financial statements

The charity trustees are responsible for preparing a trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

Signed on behalf of the charity's trustees

H.C. Sharp Trustee 30 June 2021

Page 4

Lalibela Trust Independent Examiners Report

Independent Examiner's Report to the trustees of Lalibela Trust

I report to the trustees on my examination of the accounts of Lalibela Trust for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes.

Responsibilities and basis of report

As the charity's trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011('the Act'). The trustees consider that an audit is not required for this year under the Charities Act 2011, s.144(2) (the 2011 Act) and that an independent examination is needed.

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

Independent examiner's statement

I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in, any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

David Johnson FCMA David Johnson Associates Concord, South Town Lane West Pennard Glatonbury, Somerset England BA6 8NS 30 June 2021

Page 5

Lalibela Trust Statement of Financial Activities

for the year ended 31 December 2020

Notes
Income and endowments
from:
Donations and legacies
3
Total
Expenditure on:
Charitable activities
4
Other
5
Total
Net gains on investments
Net expenditure
Transfers between funds
Net expenditure before other
gains/(losses)
Other gains and losses
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Unrestricted
funds
2020
£
2,792
Restricted
funds
2020
£
68,855
Total funds
2020
£
71,647
Total funds
2019
£
81,280
2,792
5,000
639
68,855
92,000
102
71,647
97,000
741
81,280
80,600
722
5,639
-
92,102
-
97,741
-
81,322
-
(2,847)
-
(23,247)
-
(26,094)
-
(42)
-
(2,847) (23,247) (26,094) (42)
(2,847)
12,750
(23,247)
46,801
(26,094)
59,551
(42)
59,593
9,903 23,554 33,457 59,551

Page 6

Lalibela Trust Balance Sheet

at 31 December 2020

Charity No. 1147147
Current assets
Cash at bank and in hand
Net current assets
Total assets less current liabilities
Net assets excluding pension asset or liability
Total net assets
The funds of the charity
Restricted funds
Restricted income funds
7
Unrestricted funds
7
General funds
Designated funds
Reserves
7
Total funds
2020
£
33,457
33,457
33,457
33,457
33,457
33,457
23,554
23,554
12,750
(2,847)
9,903
33,457
2019
£
59,551
59,551
59,551
59,551
59,551
59,551
46,801
46,801
12,750
-
12,750
59,551

Approved by the trustees on 30 June 2021

And signed on their behalf by:

H.C. Sharp Trustee 30 June 2021

Page 7

Lalibela Trust Statement of Cash flows

for the year ended 31 December 2020

Cash flows from operating activities
Net expenditure per Statement of Financial Activities
Net cash used in operating activities
Net cash from investing activities
Net cash from financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Components of cash and cash equivalents
Cash and bank balances
2020
£
(26,094)
(26,094)
-
-
(26,094)
59,551
33,457
33,457
33,457
2019
£
(42)
(42)
-
-
(42)
59,593
59,551
59,551
59,551

Page 8

Lalibela Trust Notes to the Accounts

for the year ended 31 December 2020

Basis of preparation

The financial statements have been prepared in accordance with Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic if Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity. Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values. Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.

Income

Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability. Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA.

Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets

Page 9

Lalibela Trust Notes to the Accounts

Expenditure

Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT expenditure which cannot be fully recovered, and is reported as part of the expenditure to which it relates. Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs. Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid. Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs. Other expenditure These are support costs not allocated to a particular activity.

Taxation

The charity is exempt from tax on its charitable activities.

Freehold investment property

Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Trade and other debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Page 10

Lalibela Trust Notes to the Accounts

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period.

Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.

All exchange differences are are taken into account in arriving at net income/expenditure.

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the charity pays fixed contributions into a separate entity. Once the contributions have been paid the charity has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the charity in independently administered funds.

Receipt of donated goods, facilities and services

All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.

Page 11

Lalibela Trust Notes to the Accounts

2 Statement of Financial Activities - prior year

Income and endowments from:
Donations and legacies
Total
Expenditure on:
Charitable activities
Other
Total
Net income
Net income before other
gains/(losses)
Other gains and losses:
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
3
Income from donations and legacies
Unrestricted
£
1,870
-
922
-
2,792
Unrestricted
funds
2019
£
7,845
7,845
5,500
116
5,616
2,229
2,229
2,229
11,010
13,239
Restricted
£
-
33,520
-
35,335
68,855
Restricted
funds
2019
£
73,435
73,435
75,100
606
75,706
(2,271)
(2,271)
(2,271)
48,583
46,312
Total
2020
£
1,870
33,520
922
35,335
71,647
Total funds
2019
£
81,280
81,280
80,600
722
81,322
(42)
(42)
(42)
59,593
59,551
Total
2019
£
3,951
34,050
3,894
39,385
81,280

Page 12

Lalibela Trust Notes to the Accounts

4 Expenditure on charitable activities

4
Expenditure on charitable activities
Expenditure on charitable
activities
Governance costs
5
Other expenditure
General administrative costs
Legal and professional costs
Unrestricted
£
-
-
5,000
-
5,000
Unrestricted
£
24
615
639
Restricted
£
87,000
5,000
-
-
92,000
Restricted
£
102
-
102
Total
2020
£
87,000
5,000
5,000
-
97,000
Total
2020
£
126
615
741
Total
2019
£
70,000
5,100
5,000
500
80,600
Total
2019
£
137
585
722

6 Staff costs

No employee received emoluments in excess of £60,000.

Page 13

Lalibela Trust Notes to the Accounts

7 Movement in funds

Restricted funds:
Restricted income funds:
Community Project - Norman
Coward
Total
Unrestricted funds:
General funds
Designated funds:
Lalibela Maternity Unit &
Community Support
Total
Revaluation Reserves:
Total funds
At 1 January
2020
46,801
46,801
12,750
-
-
59,551
Incoming
resources
(including
other
gains/losses)
£
68,855
68,855
-
2,792
2,792
71,647
Resources
expended
£
(92,102)
(92,102)
-
(5,639)
(5,639)
(97,741)
At 31
December
2020
£
23,554
23,554
12,750
(2,847)
(2,847)
33,457

Purposes and restrictions in relation to the funds:

Restricted funds:

Community Project - Norman Norman Coward Community Projects Coward

Designated funds: Lalibela Maternity Unit & Establish Maternity Unit and Support Infrastructure Community Support

8 Analysis of net assets between funds

Net current assets Unrestricted
funds
£
10,509
10,509
Restricted
funds
£
22,948
22,948
Total
£
33,457
33,457

Page 14

Lalibela Trust Notes to the Accounts

9 Reconciliation of net debt

Reconciliation of net debt
Cash and cash equivalents
Net debt
At 1 January
2020
£
59,551
59,551
59,551
Cash flows
£
(26,094)
(26,094)
(26,094)
At 31
December
2020
£
33,457
33,457
33,457

Page 15

Lalibela Trust Detailed Statement of Financial Activities

for the year ended 31 December 2020

Income and endowments from:
Donations and legacies
Total income and endowments
Expenditure on:
Charitable activities
Total of expenditure on charitable
activities
General administrative costs,
including depreciation and
amortisation
Bank charges
Postage and couriers
Legal and professional costs
Accountancy and bookkeeping
Total of expenditure of other costs
Total expenditure
Net gains on investments
Net expenditure
Net expenditure before other
gains/(losses)
Other Gains
Net movement in funds
Reconciliation of funds:
14
10
24
615
615
639
5,639
-
(2,847)
(2,847)
-
(2,847)
Unrestricte
d funds
2020
£
1,870
-
922
-
2,792
2,792
-
-
5,000
-
5,000
5,000
72
30
102
-
-
102
92,102
-
(23,247)
(23,247)
-
(23,247)
Restricted
funds
2020
£
-
33,520
-
35,335
68,855
68,855
87,000
5,000
-
-
92,000
92,000
86
40
126
615
615
Total funds
2020
£
1,870
33,520
922
35,335
71,647
71,647
87,000
5,000
5,000
-
97,000
97,000
Total funds
2019
£
3,951
34,050
3,894
39,385
81,280
81,280
70,000
5,100
5,000
500
80,600
69
68
80,600
137
585
585
741
97,741
-
(26,094)
(26,094)
-
(26,094)
722
81,322
-
(42)
(42)
-
(42)

Page 16

Lalibela Trust
Detailed Statement of Financial Activities
Total funds brought forward
Total funds carried forward
12,750
9,903
46,801
23,554
59,551
33,457
59,593
59,551

Page 17