Charity rngistration numbor 1147666 THE AFRICA TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
THE AFRICA TRUST LEGALAND ADMINISTRATIVE INFORMATION Tru8tee¥ Mr David Fremel Mrs kn'rsten Seade Mr Jo3ja Searle Charity number 1147666 Prlnclpal address Seet . ATrdan Geraghty 10 lQngs Court Wllie Snaith Road Newmarket CB8 7SG Audltor 38 Northgate N8wark-on-Trent NottinghamSre NG24 1EZ Bankers HSBC PLC 63- 64 StAndrebVs Street Cambridge C82 3BZ
THE AFRICA TRUST CONTENTS Page Trustees, report Statement of trustees. responsibilthes Independent authtofs report 9-11 Statement of finanaal actitieS 12 Bal8mce sheet 13 Notes lo the fina18[ statements 14-19
THE AFRICA TRUST TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustee3 present their Annual Report and Financial Statements for the year ended 31 Dember 2023. (Previous year ended 31 Dernber 2022). The financial statements have been prepared in accordanee with the accounting policies set out in note 1 to the financial ststemenls and comply wth the chartty's goveming dotsjment. the Charrties Act 2011 and 'Accounling and Reporting by Charities". Statement of Recommended Pra¢"ce applicable lo charities preparing their accounts in accordance w¢lh the Finanoal Reporting Standard applible in the UK and Republic of Ireland {FRS 1021" las amgnded for aceounling peiiods commencing from 1 January 20191 Objectives and actlvltles The objectives of the Trust 8re.' To promote sustainable development for the benefft of peOe in Africa through.. Al The relief of poverty and the improvement of the conditions of life in socially and ttonomical disadvantaged communities., Bl The promotion of sustainable means of aoiewng onoMiC growlh and regeneration.. C) The preservation. conservation and protection of the enwronment a partIlar fo5 on improvoments to water supply an¢J sanitation.. D} To advance the educab.on of tho public {in the UK and elsewhere) in subjects relating to sustainable development 8nd to promote study and research in SLth subjects provided that the useful results of suth study are disseminated lo the pUl1C at large. 'Sustsinable devel¢)pment' means 'Developmerrt vthich meets the needs of the present wthout compromising the at)ility of frjture generations lo rnt Iheir own needs.. The Trust caleS out these tleNeS by: Al Providing grants lo partner organisabons in Afric8 to fvnd activities vthich VAII further the TnJsYs charitable objectives while building the capacity of eath partner. Bl Funding research into innovations. with 8 particular focus the Trnst's core strength of &an water supply and sanitation. The Trust carries out this programme through partnerships independent organisations in various countries across Afri. These partners include the Zimbabwe Africa Trust and the Aliance Development Africa Trust in Zimbabwe, the Alliance Development Africa Foundation in Malaw, LiwrrfJ Busness Education in Uganda and the Another Hope Foundation in TanzaTha. The Trustees have paid due regard to guidance issuéd by Ihe Charity CoMmisOn in deading what activities the charty should undertake. Grant maklng poll¢y The Trust has established ils grant making policy to 8L*ieve its objectives. How the grant and research progrdmmes delivered public bgnofft: a reylow of tho achlovoments and perfomiance.
THE AFRICA TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Achiavemfynts and porfornance The total nurnber of beneffaaries at the start of 2023 vr4s 3.TT6.616 and 292,875 new beneficiaries were added. Thls includes 6.329 benefiaaries for the entrepteneurial training and loans programmes. A lolal of 942 new pumps were installed in 2023 (1,003 in 2022). The suspension of operations for nearly a month during the eleth'on period. caused this reiluclion from 1,003 down 19 942 pumps built. Al of these pumps were installed in Zimbabwe. 18 new toileis were built in Tanzania along wlh signfficanl improvements and exLen5ion of tre gravily-fed water pipelines. After Cyclone Freddy, 51 f8milies in Malawi were asshsled to rebuild their devastated homes and move back from camps. wth over four million beneficAaries. TheAfrica Trust is now one of the leading aid and development organisatK)ns on the conlinenl in terms of the number of beneficiaries served. This is despite the relatively small annual budget ompared to the major aid agencies. Over 40.000 people have been assisted wth entrepreneurial training, loans and the estsblishment of Mllage banks, allowing them lo set up small businesses to support themselves and their families. This is now one of the largest enlrepreneur5hip programm¢$ in Africa, vthich differs from other approaches in ils focus on helping people from the poorest communib'es lo lift themselves out of povety- Zlmbabwe 942 new Elephant Pumps were buill in Zimbabwe, at a per pump eost which was below the agreed tar9el. The savings were used for other approved projects, induding emergency relief and the distribution of ment for toilet slabs. This was achieved despite 8 reduction in funding and during an election year in Zimbabwe, in whith operations were suspended for nearty a month. TVK) ol the project vehides {an 8-lonne Iru¢k and 2 pick-up) are still in need of replacement (when fvnds all¢)wl after over eleven years of contsnuous, heavy usage. The annual maintenance cost for these vehicles is increasing. even though one of the proiect stsff is a qualified mechanic and does all repairs al cost. Pump installation was comIned with hygiene educalion durirwj 2023. through eommunlty-led totsl sanitation meeh'ngs. Such meetings have sUIted in much larger numbers of household5 instslling toilets for themselves. By offering one bag of cement per household plu5 training. far more toilets are bein9 installed, benefting many more people by avoiding open defecation in entire Communities. By addresng both water supply and sanitation for an entire cluster of villages, such as those in the catchment area of one rural sGhool, the positive health impact can be far greater. Thi$ is seen in the reduction of the water bome disease burden and therefore improved school attendance. The entrepreneurial training wogramme in Mbabwe continues to grow, while we assist our implementing partner lo pul in place structures needed to secure signtficanl independonl fvnding from other organisations. In particular. the Chief ExeeutNe has been progressing negoti3tsons wrth Christian Ad who are eJJrrently providing matched nding for the REAP Malaw project. Although ne9otialions for MmenceMent of a similar REAP Zimbalme project have taken longer than was originalty antiapated, all signs are now positi.ve that this Fyojecl wll commence in 2024. There is also interest from the Nelherfands Govemmenl and togèthèr wth Christian Aid. il is hoped that Afric8 Trust grants lo our implementing partnerADAT {for entrepreneuri81 training and bans in Zimbabwel wll be soon matched. Loan repayment has contrnued to exceed the target of 95%, wilh a fvrther increase from 96% in 2022 up to 97QA in 2023. This level of loan repayment is extTaordinary, espeaally when you consider the harsh economic environment in which most Zimbabweans find themselves. Sinee 2021. when this programme was launched, 4,722 beneficiaries have been trained and assisted lo start or improve their ¢)wn businesses. Further signrfinI investment is n88d8d for this programme, esperya1 in the first haw of 2024. for matched funding from Chrislian Aid and the Nethertands government lo be secured. There are now clearfy developed plans in place to launch the £1 million REAP Zimbabwe project in 2024 in which £S00.000. from IheAfrrca Trust over fve years. wll be matched by Chrislian Aid.
THE AFRICA TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Malawl 5,060 people received entrepreneuri4 training under the REAP Malaw prciect in 2023, which was abJve the ambitious target of 4,800 despite the devastating impa¢X of Cydone Freddy in March. Loan repayment rates in Malawi Kw8eha remained high. however this local rrencY was devalued by the curnt administration during 2023, meaning that Ihe v81ue of loan rep8ymenls in pounds stoding was v¢trd by around 44%. This came after more than a decade {from 2012) wthout any SLden devaluats.on and was therefore impossible lo anticipate and budget for. Discjjssions were had as to whether loans could be pegged to the pound at prevailing rates, but this would impact negatively on the ability of benoficiaries lo make payments in the iase of a sudden devaluation. A furthgr concem would be the appearan of there being significant interest charged on loans rf calculated in Malawi Kwacha. Overall il was decided that the priority was the pride and sense of achievement for beneficiaries when they repay their loan$ in fvll lin Kwacha wth zero interest) even thwgh the pound sterliNJ value of these repayments may have fallen. The Africa Trust's entrepreneurial training loans programme in Malawi 15 now one of the largest micri>credit organisalions in the whole county, in terms of the number of people benefitting from the loans and the village banks that have been established and continue lo operate. 287 new Mllage banks were established during 23. each with around 1&20 members. The REAP mala Projed has been tremendously S$SJ1 and is expeded lo be extended beyond the thre&year initial period. Furthemiore, REAP Malawi has provided a mod81 fraMewk foT th6 planned commencement of REAP Zimbabwe on a similar scale in 2024. One signfficant advantage in Zimbabwe, is that USD are used, hence reducing the likelihood of sudden currency devaluations impacting on the rDIvIng fund. Atthough funding for ADAF from The Africa Trust directly was lower in 2023, a grant of £135.000 made lo Chiistian Aid in November 2022 was disbursed to ADAF in 2023 along with more than matched funding from ChrislianAid. After Iloods caused by Cydone Freddy in March 2023 washed away entire villages, 51 families in Malaw were assisted to rebuild their homes. 46 of these families were surviving in refugee ¢8rnps having k)sl everyihing. It should be noted that the total cost of this project just £7,644, 1c represents the cost incurred by other aid agencies to rebuild the homesteads for four or five families. The Africa TNSI in partnership wlh ADAF. has sh¢)wn that funijs can go len limes as far if the project is well structured, working hand in hand with the affected local families. Other agencies were instead hiring o)ntradors to build housing. which o)sts much mofe with less suitable resuW5. Tanzanla 18 toilets were built in Tanzania along wrth fvrther significant extension and futureproofing of the gravity-fed pipelines, which provide dean wal$r lo tens ol thousands of people. It was decided to draw the Tanzania project lo a close at the end of the year to allow for exdusive focus on Zimbabwe and Malawi where the level of poverty is more severe and the impact of funding is greater. A signtficant and sustained p0sVe footprint wll be left behind in Tanzania with improved sanitation, and 9ravity-fed pipelines that will prowde dean water for thousands of people for decades lo come. It should be noted that before these pipelines were established. local wmmunilies were paying extortionate amounts for their household water. which was being delivered in lorries. The entire communfties in the areas vthere pipelinos We instslled came out to assist wlh digging trench&s, dèmonstrating Ihg importance of these projects. Al one time. the chief exe¢ukn"ve was digging deep trenches alongside over fr thousand peoplel The topogTaphy meant that deèp trènches were needed at certain points along more than tan kilomet5 ol piping lo allow for water lo flow by gravity rather than requiring diesel pumping stations or syphon systems that are much more likely to fail. Good water pressures were achieved by gravity alone 81 all stsndpipe taps ¢onfounding local government experts, who had insisted that pump stations wth storage tanks would be needed. The local communibes n¢)w have Contr of this prosect, along Yth adequale training for long- lem) maintenance.
THE AFRICA TRUST TRUSTEES. REPORT (CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2023 Uganda In 2023, the We 476 business thlls training graduates against a planned targèt of 360. The $e1 of funding for LBE was increased from £12.000 up to £17.000 for the enti year. It was previously deryded to end fijnding for Uganda 81 the end of 2023. It was hard to juststy continued investment there, when there is such huge potential for expansion in Malaw and Zimbabwe. The Scale of achievements from Africa Trust funding in Uganda is however extraordinary, with over 15.000 new jobs ¢7eated due to the entrepreneurial training programme. AtoTh3side this, there were many other achievements as documented over more than a decade. induding assistance for 1,200 chlli farmers in northern Uganda, fijnding for a 60-se* classroom at Mirembe Green Academy, the Mazima Retirement Scheme and the Mywater initiative to provide clean water in high density per1-uan areas. The chief exe¢LJlive will continue to provide Livingstone and LBE some support vthen requested. such as assistance in writing fvnding proposals. Monltorlng achlevement All partner organisalions provide regular updates progress induding aoUnts, narrative reports and photos for all the projects. There are a number of layers ol monitoring both inlemally. within the partner organisations, and exlemally, including Tegular visits {nomially) and conb"nuous remote monitoring by the chief exe¢ulive, independent monitoring exeroses, Iruslee visits to projeets and regLFlar chethng of prresS for all field programmes against agreed milestones. Senior personnel from the partner organisations are also sent by the chief executive to visit the Africa Trust funded projects in other countn.es for training and monitoring purposes. The trustaes of The Afric% Trust review progress through fomial quartwty meth.ngs and keep w to date wth regular phone Calls and gnail exchanges. Flnanclal rèvlew In total, incoming resovrces for the calendar year 2023 amounted lo £1,418.835 {2022'. £1.735,4921 from which grants and paymènts lo partners and projects, induding the chief executive's remuneration, of £1,398,444 12022.. £1,e59,0281 have been rnade. Govemance costs of £8.67412022'. £10,184) have been deducted leawng a surplus of £11,71712022: deficit £133,720) to be added to reserves. The trustees age0 that the minimum level of free seNe5 would now be set at £50.000. This loww level ol reserves is possible due to the reliable and regular income flow from Aqid and because it has prowan p08sible lo scale down operations, such as pump building, al short notTh rfand when this is required. Total assets at the end of 2023 amounted to £179.085. H¢ywever, vAth £107,771 in liabilities, including £100,000 oulslanding for the long-lemi loan from the late Paul Searfe's brother John, the actual level of free reserves at the end of 2023 was £71,314. This is above the largel of £50.000 that was set as a minimum Tevel for free reservès. The surplus for the year was £11,717. Expefrence in 2020 demonstraled that operations can be scaled down and up rapidly response lo changes in the flow of funding. Rl$ks The trustees have considered the major risks to whith the chartty is exposed and have revtewed those risks and established systems and procedu$ to manage those risks. The major risk is the extent to which the grants awarded wll fiJrther the aims ol the Trust due to operational challenges on the ground. The trustees manage this risk and seek to maximEe the positive impaci by regularfy reviewing the outputs and activities of all implemènting partners and by reviewng the fijnding lo each partner accordin9 to their monrtored achievements.
THE AFRICA TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Grants Approved for th8 P8rlod January 2024- December 2024 1. At least £900.000 wll be allc(ated lo the Iimbath¥e Africa Trust {ZATI primarity for the core programme of instslling and maintaining Elephant Pumps to provide dean waler in poor rural comrnunilies in Zimbabwe including allocation lo sanilalion projects and emergency relief. Under the terms of this grant. Z4T would commit lo instslling one new pump for every one thousand hundred pounds provided. As ZAT is a non- profit organizalion. any funds saved would be used by ZAT to.. instsll addition81 pumps. improve capacity such as vehicles and to invest in secondary projects to relieve povety and emergency relief for those in esperate situations. ZAT would be expected to provide the chief executive wth weeY updates on progress induding photos of pumps buitt and repts on the secorKlary projects. The impact of the projed$ would be monitofed induding estimates of the number of people who were assisted to have a sustainable suppty of dean productive water. This Unty programme is the flagship endeavour of theAfrica Trust, which satisfies the needs and interests of theAfn"ca Trust's core funderAquAid. since money donated from their watèr tsIer business is used to establish supplies of clean drinking water in poor areas of Africa. If funds allow. an eight-ton truck an¢Yor a pid(-up afe needed during 2023. 2. Up lo £15.000 for the year for em8rgerq relief at the discrelion of the Chief Executiv&. 3. A subsistence and operation81 allowan of up lo £55,000 would k maintained for the Chief Executive to oversee, monitor and develop the field progr8mmes. This is structured to include a formal UK nel salary of £2,500 per month plus fvnds towards a penon scheme. This allowan can indude up to £5k towards attommodalion. travel. food and other basKs such as air-time for phone and data needs. 4. Up lo £200,000 was approved to go towards the business skills trwning and small loans woject run by ADAF in Malaw Ifunding can erther be direct or via Chrislian Aid under the REAP Malaw project>. 5. Up lo £200.000 would be allocated toADAT for bne$S skill$ training wth108ns in Ombabwe. 6. Up to £10,000 is proposed for UK administration, induding audit. Approved Budget for 2024 Beneficiaries Exlstlng Dgtalls ncome Expendlturn Now lapprox.} Aqd and other Sources 1.350.000 Pumps, Pipelines and Relief 950.000 4.011,251 280,000 Business Skills Training lincluding loans, grants and riculture 400,000 58.240 6,ODO Pro ects - Sub Total 1.350.000 UK adminislr81ion and audit 10.000 TOTAL 1,350.000 1,360.000 4.069,491 2B6,000 ' Thè UK Payroll is ineorporated into the proied m8na9emenl 1x9t$.
THE AFRICA TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 StruUre. govemance and management The Africa Trust becamo a registered charity. number 1147666, on 12th thjne 2012 haMng been in operation since December 2010 and is constrtuted under a trust deed. The Trustees who served during the year and up lo the date of signature of the finanaal statements wero.. Mr David Fremel Mrs Kirsten Searle Mr Joshua Searfe The Board wll next deode wjn any extensi¢M to the curnent lenuies of trustees in June 2026 for Joshua Searfe and in May 2025 for David Fremel and lfjrsten Searfe. New Iru$lees are appoinled by the existing trustees and serve for three lo fve years after which they may p themselves forward for re-appointment. The trust deed provides for a minimum of 3 trustees. to a maxunum of 9 Iruslees, wlh no more than 3 trustees due for re-appointment in any one year. All Iruslees give of their lime freely and no trustee remuneration was paid. No expenses were daimed by any of the trustees. Trustees are required lo disdose all relevant interests and register them with the chief execub.ve and in a¢cordance wlh the Trusvs policy, thdraW from de(asions where a conflict of interest arises. Al the quarterfy truslees. meetings, the bustees ree the broad strategy and areas of acliwty for the Trust, induding consideration of grant making, reserves and risk management policies and p?rfom)ance. Day-to-day administration of grants and the processing and handling of applicab.ons prior lo consideration by the trust&es is dèlegated lo the hief executive. The chief executive did not daim any expenses during the year. He was able to subsidvze his work with his own funds and with part of the salary paid to him by the Trust durin9 the year. Salary payments paid lo the chiel executive including his pension and national insurance contn"butions arnounted to £50,763 during ihe year. The trustees fomially approved arrangements Mng wth the ICSA guide 'Recruitment. Appointment and Induction of Charity Trustees, and now convene the Nominalions Sub Committee as required both lo recrurt now trustees for their experience. empathy and knowledge of the charlty and lo keep the skills and composition of the tTL151ee body and succession planning under review. New Irustees may be sought by open advertisement or through a dialogue with polential Candidates. Respecting the ethos of the Twsl to conb.nue the charitable work intended by the fou[eT$. the ultimate decision on sdection is a matter for the truslees. On appointment. new trustees commit to giwng of their time and expertise. The induo*on process follows the ICSA 900d practice guide with a fomial inducbon programme for any newly appnted truslee which indudes an initial meeting with Ihe chaimian and the trustees. followed by a series of meetings wtth the thairman and chief executive on responsibilities of the trustee board and the sub commrttees. This induction includes a brief history ol the Trust, copies of trustee board and subcommittee minLttes. a copy of recent annual reports and accounts, a copy of the governing trust deed and a copy of the Charity Commission's guidants The Essential Trustee.. al You Need to Knovl and.Charit$ and Public Benefiv. The Iru8tses are related parties to the charity", lQrsten Searte is a director and controlling shareholder ofAquAid Frand)Ising Limited which company is the major contributor lo the Charity, donating £1,127,925 in the year 2023 {2022'. £1.093,1351 In addition. she personally donated £110.00012022'. £366.250} in Ihe year 2023, Joshu8 Searfe donated £8.5 and David Fremel donated £4,800 {2022'. £4,800).
THE AFRICA TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Dlsclosure of Informatlon to audltor Each of the Trustees has confim)ed that there 15 no infomiation of vthich they are aware which is relevant to the audit, but of whith the aud(tor is unaware. They have further nf1m)ed thal they have taken appropriate steps lo idenufy such relevant information and to establish that the audrtor is aware of such irrformalion. The trustees. rert was approved by the Board of Trustees. MrJoshua Trustee Dated. il.K*.&..LF.
THE AFRICA TRUST STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees are TesFL)nsible for preparing the Trustees, Rewi and the accounts in acenrdanee wilh apF4icable law and United lfjngdom Accounting Standards {United Kingdom GeneraltyAcrnpled Acwjnting Practi(s}. Thg law applicable to charits'es in England and e$ requires the Trustees to prepare accounts for each financial year which give 8 tru¢ and fair view of the state of affairs of tharity and of Ihe inc4)min9 resources and appli¢a¢ion of resources of the charty for th* year. In preparing these accounts, the Trustees are required to: - SeCl suitable accounting Foliaes and then appty them ¢on$stentJy; - obsetve the methods and prinuples n the Chariknes SORP" - make judgements and estimates that are reasonable 8fKI wudent
tale whether applicable accounting standards have been fdlowed. subject lo any material departures dlsdosed
and explained in the accounts.. and - prepare the accounts on the going con¢em bask8 Lnless r( is inappropriate to presum8 that the tharity will continue in operation. The Trustees are responsible for keeping sufficient accounting reeords that disdose wth reasonable accuracy at any lime the financial position of the charity and enable them to ensure that the accounts comply with the Ch8r¢ties Act 2011, the Charity (Accounts and Reports} Regulations 2008 and the Provisions of the trust deed. They are also responsible for safeguarding the assets of the charty and hence for taking reasonable steps for the prevention and detection of fraud and other irwularilies.
THE AFRICA TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THEAFRICA TRUST Oplnlon We have audited th& financial statements of The Africa Trust (the 'Chatl for the year ended 31 December 2023 which comprise the slalement of finanual aciivities, the balance sheet and notes to the financial statements. including significant accounting polioes. The finanryal reporting framewod( that has been 8pplied in their preparation is applicable law and United Kingdom Aecounting Standards. induding Finanaal Reporting Standard 102 Th8 Fin8ncial Reporting Standard applicabl8 in tha UK and R8piJblic of lTrland (United lQ"ngdom Generally Accepted Accounting PlaCe). In our opinion, the flnartial statements.. give a true and fair Mew of the stale of the tharitys aff[3 as at 31 December 2023 and of ils incoming resources and applicatson of resour. for the year then ended., have been propedy ppared in accordance with United kn"ngdom Generally Accopted Acuunting Practice; and have been prepared in accordance th th8 requirements of ts CharitiesAct 2011. Basis for oplnlon We conducted our audit in aceordanee wrth Intemational Standards on Auditing IUKI IISAS (UKII and applicable law. Our responsibilities under those sland8rds are further described in the Auditorfs responsibilrfies for the audit ol Ihe financAal slatem8nts sec*ion of our report. We are independent of the charity in accoTdance Nvith the ethical requirements that are relevarrt lo our audii of the financial statements in the UK, induding the FRC'S Ethical Standard, and we have fulfilled our other ethical respongbililie$ in ardance with these requirements. We believe that the audrt evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to going concern In auditing the finanal statements, we have Cp)nduded that thè tTU$tee$' use of the gryng concem basis ol accounting in the preparation of the finanaal statements is appropriate. Based on the woth we have perfomed. we have not identtfied any material unCtsintie5 relating to events or conditions that, individually or ¢olleth"vely, may cast significant doubt on the charity's ability to continue 8s a going cOnM lor a period of 81 least twefve months trom %then the finanoal stslemenls are authorised for issue. Our responsibile3 and the responsibilities of the Trustees with respect to going concem are described in the relevant sections of this reporL Other Inforniatlon The olheT information comprises the InforrnatA induded in the annual report other than the finarla1 stslements and our auditorfs report Ihereon. The Trustees are responsible for the other information Contained within the annual report. Our opinion on the finanaal statements does not cover the other infomialion and we do not express any fomi of assurance conclusion Ihereon. Our responsibility is to read the other infomiation and, in doing $0, consider whether the other information is materially inconsistent wrth the finanaal stslements or our knowledge obtained in the course of the audiL or olhemse appears to be materially misststed. If we identify such matertal inconsistencies or apparent material misstatsments, we are required to d8lemiine whether this gives rise to a material misststement In the financial ststsments themselves. If. based on the work we have perfomied, we condude that there is a mateiial misslalement of this other information. we requ(red to pOrt that fact. We have nothing to report in this regard. Matters on whlch we are requlred to report by exception We have nothing to report in respect of the follomng matters in relakn¢Jn lo whth the Charities {Accounls and Repgrts) Regulations 2008 require us to report lo you rf. in our opinion.. the infomialion gwen in the finanual statements is inconsistent in any material respect the trustees, report.. or suffirient aceounling records have not been kepL or th6 financial slalements a not in agreemenl with the a¢xoJnting records.. or we have not received all ts infomialion and explanations we require for our audit.
THE AFRICA TRUST INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE AFRICA TRUST Responslbllltles of Trustees As explained mofe lully in the ststement of trustees, responsibilities, the Trustees are responsible for the preparation of the financial statements and for bwng 5ats"sfied that they give a true and fair view, and for such Internal control as the Trustees deterniine is necessary lo enable the preparation of financial slalemenls that are free from material misslatemenl, whether due lo fraud or error. In preparing the financial statements. the Trustees are responsible lor assessing th¢ charity's ability to ntinue as a going concem. disclosg, as applicable, matters related lo going concem and using the going concern ba515 of a¢c¢JJnting unless the Tfustees either intend lo coase operations, or have no re81istic aitemalive but lo do so. Audltorfs responslbllltles for the audlt of thè financial statements We have been appointed as auditor under section 144 of the chariti.es A¢t 2011 and report in aceordanee wlh the Act and relevant regulalions made or having effect thereunder. Our objectlves are lo obtain rea80nae a&8urarbce abc¥Jt ether the finarrial slalemenls as a ole are free from malerial misstatement, whether due to fraud or error. and to issue an auditorfs report that indudes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee thal an audit conducted in accordance with ISAS {UK) will always detect a matefial misstalemenl when it exists. Misslalemenls can arise from fraud or error and are considered malerial rf, individually or in the aggregate. they could reasonably be expeded to influenr the economic decisions of users taken on the basis of these financial statements. We identify and assess the risks of material misstatement of the entIS finanal sL*ements, whether due to fraud or eThor, desgn and perform audit pr¢xedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, mi5repre$fjntslions, cf the override of Intern control. We obtsin an understsnding of internal control relevant lo the audii in order to design audrt PfDcedures that are appropriate in the arcumstances, bul not for the purpose of expressing an opinion on tho effeCtivesS of the group's inlemal control. We evaluate the appropriateness of accounting p)lioye8 used and the reasonablenèss of a¢c£Junling estimates and related disclosures made by the trustee$. We condude on the appropriateness ol the Iru$18es' use ol the going ncern basis of accounting and, based on the audit ewdence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's abilty to continue as a going conM. If we cx)nclude that a material uncertainly exists, we are required lo draw attention in our auditor's report to the related disclosures in the finanoal statements or, if such disclgsures are inadequate. lo modify our opinion. Our conclusions are based on the audit evidence Obtain up to the date of our auditor's rewt. However. future events or ndittrns may cause the charity to cease to continue as a going con¢em. We evaluate the overall presenlalion, structure content of the financtal Stalemenls. in¢lLKling the dI10Sre$, and whether the financial slalements represent the underlying transactions and events in a mann8r that achièves lair piesenlalion {i.e. gives a true and fair view). We communicate wth those charged govemance regarding, among other matters. the planned scope and timing of the audit and significant audrt findir¥Js. induding any significant defiL?enues in internal control that we identify durfng our audit. 10-
THE AFRICA TRUST INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE AFRICA TRUST 1Thggularib'es, induding fraud, are instances of non-compliance laws and regulations. We design procedures in line with our sponsibl1111e$, outlined above. lo delect material misstatement5 in respect of irregularities. including fraud. The extent lo which our procedures are capable of detedÈng irtegularib'es. induding fraud is detaled below.. making enquiries of management as to where they considered there was SuPtib11ty lo fraud, the knowledge of actual. suspected 8nd alleged fraud., considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations., and lesled journal entTies to idenlrfy unusual SactiOns. assessed whether judgements and assumptions made in detemiining the accounting esb'mates were Indicats"ve of potential bias., • invesligoled the rab'onale behind gnfftanI or unusual transathons: agreeing finanaal statement disdosures to underlying supporting documentab'on; • reading the minutes of meetings of those charged yth govemance.. enquiring of management as to aciual and potentiallrtsgation and d8ims.' A fvrther (Jescription of our responsibilrties is available on the Finla1 Reporting Coun¢il'$ website at.. https.'Il www.frc.org.uklauditorsresponsibilities. TINS description fClS part of our auditorfs report. Other matters Your attention is drawn to thè la(A that the charity has prepared finanaal statements in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard appIlble in the UK and Republic of Ireland IFRS 102)" las amended) in preference to the Accounting and Reporting by Charities: Slalement of Recommendeil Practs'ce issued on 1 April 2005 which 15 refe¢d to in the extant regulations Ixrt has now been withdrawn. This h88 been done in order for the financial statements lo prowde a true arKJ fair wew in accordance wth current Gener811y Accepted Accounting Practi. Uso of our report This report Is made solely to the Charty's trustees, as a body, in accordance Mth part 4 of the Charities {A¢counts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state lo the charity's Iruslees those matters we are requireé lo slate lo them in an aLtditorfs report and for no other purposg. To Ihe fullost exlfynl pemitted by law. we do not accept or assume responsibilty to anyone other than the Chaiity and the charity's Iruslees as a body, for our audit work. for this repori or for the opinions we have fomied. Brown Warner LLP Chartered Accountants Statutory Audltor 38 Northgate Newark-on-Trent Nottinghamshire NG24 1 EZ Brown Warner LLP is eligible for appointment as auditor of the charity by vithe of its eligibilty for appointment as auditor of a company under section 1212 01 the CompaniesAct 2006. 11
THE AFRICA TRUST STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOMEAND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unre$trl¢ted Unrestrl¢ted funds funds 2023 2022 Notss Income from: Donations and legacie$ 1,418.835 1,735,492 Total Incom• 1,418,835 1,735,492 Exp•nd1tU on: Charitable activities 1,407,118 1.869,212 Totsl expendlture 1.407,118 1.869,212 Net Incomellexpèndlture) and movement In lund8 11.717 1133,720} Recon¢iliatlon of funds- Fund balancos at 1 January 2023 59,597 193,317 Fund balances at 310ecembor 2023 71.314 59.597 The statement of financial activities inc]udes all gains and losses recognised in the year. All income and expendlture derive from continuing activities. 12-
THE AFRICA TRUST BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Current a55ets Debtors Cash at bank and in hand 57.296 121.789 55.378 210.712 179.085 266.088 CredTtors: amounts falllng due within one year 10 1107.7711 1106.4911 Net current assets 71.314 159.597 CredrtovJ.' amounts falllng due after more than one year 11 1100.000) Net assets 71.314 59.597 The funds ol the charlty Unrestricted lunds 71.314 59,597 71.314 59,597 The ffinancial stslements were approved by the Trustees on L4. Mr Joshua Searle Trustee 13-
THE AFRICA TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollclgs Charfty Inforniation The Africa Trust is a Registered Charity, number 1147666. 1.1 Accountlng Conventlon The accounts have been prepared in accordance woth the tharilys Trust Deed, the Charrbes Act 2011 and 'Accounting and Reporkn"n9 by Charities.. Statement of Recommended Practice applicable to charities preparing thr accounts in ac¢ordan¢e with the Financial Reporting Standard appli¢able in the UK and Republic of Ireland (FRS 102)" {as amended for accounting periods ty)mmenang from 1 January 2019). The arity is a Public Benefft Entity as defined by FRS 102. The Charity has taken advantage of the provisions in the SORP for charities applw.ng FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. Tha finanaal statements have departed from the Charities (Accounts and Reports) Regulations 2008 only lo the extent required lo provide a true and fair wew. This departure has inVoed following the Stslemenl of Recommended Practice for charities applysng FRS 102 rather than the version of the Statement of Recommended Pra¢8 which is referred to in the Regulati$ bLrt which has sirKe withdrawn. The financial slalements are prepared in steding. which is the fvnctional cJJrrency of the ¢harity- Monetary amounts in these finaroal statements are n)urKled to the nearest £. The financAal slalemenls have been prepared under the historical cost convention. The prinapal a¢¢ounling poliues adopted are set out below. 1.2 Golng concern Al the time of approving the financial Stalemenls. the Trustees have a reasonable expectation that the charity has adequate resources lo continue in operational e$tence for the foreseeable future. Thus the TrLStees conlinue lo adopt the going nCeM basis of o¢counting in preparing the financial statements. 1.3 Charitable funds Unrestricted funds are available for use at ts disuetion of the Trustees in fiJrtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors or grantors a5 to how they may be used. The purposes and uses of the reslncte(J fiJnds are set out in the notes to the financial statements. Endowment fund$ are subje(I to speofic conOnS by donors that fhe Capita musl be maintained by the charity. 1.4 Incoming resources Income is renISed when the charity is legalty entitled to it after any perfomiance conditions have been met, the amounts can be measured reliably, and it is probable that income TrMII be recèNed. Cash donations are ra¢ognised on receipt. othor donations are reo)gnisod once the c*arty has been wb.fied of the donation, unless perfomiance conditions require deferral of the amount. Inwme tsx recoverable in relalion lo donations received under GiftAid oi deeds of covenant is recognised al the time of the donation. Legacies are r¥ognised on receipt or otheThSe rf the charity has been nottfied of an impending dislribulion. the amount Is known. and receipt is expe¢ied. If the amount is not known. the legacy Is treated as a contingent asset. 14-
THE AFRICA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting polkles (Continued) 1.5 Cash and cash equlvalents Cash and cash equivalents include cash in hand. dewts held al 11 ¥th banks, other short-temi liquid inveslmenls with original maturiti'es of three months or less. and bank overdrafts. Bank Overaft$ are shown within borrowings in current liabilities. 1.6 Flnanclal Instruments The charity has elected to apply Ihe provisions of Seclion 11 'Basic Finanoal Instruments. and Section 12 'Other Financial InstnJments Issues. of FRS 102 to all of rls finala1 instrument$. Financial irbstruments are recognised In the ch$ balance sheet when the tharty becomes paty lo the ntractual provisons of the instrument. Financial assets and liabilibes are offset, ¥th the net amounts presented in the financial statements, %then Ihefe is a legally enforable right lo sel off the recognised amounts and there is an intention lo settle on a net basis or to realise the asset and settle the liabilty simultaneously. Baslc Ilnanclal assets Basic financial assets, which ide debtots and cash and bank balanc*s, are initially measured at transaction price induding transacaion costs and are subsequenly carried at amortised cost using the effe(aive interest method unless the afrangeTnent consbtules a financAng transaction. where the transadion is measured al the present value of the future receipts discounte(l al a marf(et rate of intere$L Financial assets classified as receivable wthln one year are not amort"tsed. Bo$1¢ flnancial liabilities Basic financial liabilbknes, induding creditors and bank loans are inilk41ty recognised at transaction price unless the arrangement eonstitules a financing transaction. vthere the debt instrument is rneasured at the present value of the future payments discounted at a market rate ol interest. Financ3al liabilib'es classified as payable wlh41 one year are not amortJ"sed. Debt instruments are subsequently carried at amortised cost. usiThJ the effectNe interest rato method. Trade creditors are obligations to pay lor goods or swvices that have been acquired in the ordInY course of operats'ons from suppli&rs. Amounts payable are dass)led as current liabilities if payment is due within one year or less. If not, they are presented as non-currenl liabilities. Trade credrtors are recognised initially at transaction pre and subs8quendy measured at ortised cost using the effective inleTest method. Der8¢ognltlon of financial liabilities Financial liabilities are deognISed en the Charis contractual obligth.ons expire or are discharged or C8ncelled. 1.7 Employee ben&fits The cost of any unused holiday efttillement is recognised in the perithj in which the employee's services are rerrived. Termination benefits are recognised immediatety as an expense vthen the charity is deMCstsaY committed to terminate the employment of an employee or lo provide teminalK•n bènefits. 1.8 Retirem•nt benefrts Payments to defined contribution retiremerrt benefit schemes are charged as an expense as they fall due. 15-
THE AFRICA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Donatlons and legacle8 Unrestrlcted Unrestricted funds funds genÈraS general 2023 2022 Donation5 and gifts 1,418.835 1.735,492 Charftablè actlvltles 2023 2022 Staff costs Bank and other charges Legal and professional expenses 50,763 74 8,600 51,072 288 9,e96 59.437 61,256 Grant fundlng of activities18ee note 4> 1.347,681 1.807,958 1,407,118 1.869,212 Grants payable 2023 2022 Grants lo institutions.. 1,347.681 1,807,956 Induded within the cost of pumps, pipelines and sanitation are grants paid lo Zimbabwe Africa Trust lotalling £1,138,095 (2022.. £1,112.263) which is the largest reopient of funds during the year. Trust888 None of the Trustees {or any pwsons eonnected with them) received any remuneration during the year, but the chief executive was paid a salary and pension fvnd contributions as set out in note 6. 16-
THE AFRICA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Employees The 8verag8 monthly number of employees. induding the Trustees, during the year wa$: 2023 Number 2022 Numbèr Employment costs 2023 2022 Wages and salaries Other pension costs 43,263 7,500 41,072 10,000 50.763 51.072 There vrfere no emOyeeS whose annual remuneration vrds more than £60,OCKI. Taxation The charity is exempt Irom taxation on its artivsties because all its income is appl for charitable purposes. Dgbtors 2023 2022 Amounts falling du&wlthln oneyear. Trade debtors 57.296 55.376 Loans and overdrafts 2023 2022 Other loans 100.000 200,000 Payable within one year (see note 101 Payable after one year {$ee note 11) 100,000 100.000 100,000 A loan of £250,000 was provided by co¢jerd Limited. in August 2022 and is repayable in equal six monthly instalmenls of £50.000 commen¢ing in December 2022. The loan is unsecured and is free of inlerest. 17-
THE AFRICA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 10 Creditors: amounts falling due within one year 2023 2022 Borrowngs Accruals and deferred income 100,0 7.771 100,000 6,491 107,771 106,491 11 Credltors., amounts falllng due after morn than on• y•ar 2023 2022 Borrowings 100,000 12 Retirement benefrt schernes 2023 2022 Deflned contrlbutlon schem Charge to profit or loss in respect of defined ¢))ntribuiion 5themes 7,500 10,000 The Charity operates a defined ¢ontribution pension sche for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. 13 Unrostrlcted fvnd8 The unreslrieted funds of the chaiity comprise the unexpended balances of donations and grants whith are not subject to SIfiC conditions by donors and granlors as lo how they may be used. These indude designated lunds whith have been set aside out of unr8s1ricled funds by the trustees for $peryfic purposes. At 1 January 2023 Incoming iesources Resour5 expended At31 Docgmber 2023 Gener81 funds 59.597 1.418,835 11,407.1181 71,314 Previous year. At 1 January 2022 Incomlng rg$ources ResoUe$ expènded At31 Dgcember 2022 General funds 193.317 1,735.492 (1.869.212) 59,597 18-
THE AFRICA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 14 Related party transactions Remuneratlon of key management personnol The remuneration of key management personnel was as foliows.. 2023 2022 Aggregate compensat'on 51,072 50,266 Tran$a¢tions wlth related parties During the year the ¢harity entered into the fcllowThJ transactions %Mth related parties.. The trustees are related PaeS lo the charity, Kirsten Seade 1$, and Paul Seade was. a director and controlling shareholder of AquAKI Franchising Limrted vthich company is the major contributor to the Charity, donating £1,127,925 in the year 2023 {2022'. £1.093.1351 In addibon, she ptrrwnally donated £110,000 12022.. £366,250) in the year 2023. Joshua Seade donatèd £8.500 and David Fremel donated £4,80012022.' £4,800). 19-