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2023-03-31-accounts

Charity registration number 1147678

Company registration number 07976404 (England and Wales)

OPES-LCEF

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

OPES-LCEF

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees E Casolari
G Freato
B Wenz
Charity number 1147678
Company number 07976404
Registered office Devonshire House
1 Devonshire Street
London
W1W 5DR
Auditor Citroen Wells
Chartered Accountants
Devonshire House
1 Devonshire Street
London
W1W 5DR
Bankers Lloyds Bank Plc
25 Gresham Street
London
EC2V 7HN
Solicitors IBB Solicitors
Capital Court
30 Windsor Street
Uxbridge
Middlesex
UB8 1AB

OPES-LCEF

CONTENTS

Page
Trustees' report 1 - 5
Independent auditor's report 6 - 8
Statement of financial activities 9
Statement of financial position 10
Notes to the financial statements 11 - 18

OPES-LCEF

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's trust deed, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

OPES-LCEF’s object, as set out in Paragraph 3 of its Articles of Association is “to promote for the benefit of the public sustainable development by the preservation, conservation, and protection of the physical and natural environment and to relieve poverty, suffering and hardship in any part of the world. Sustainable development means development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.

OPES-LCEF is a charitable company registered in England. In meeting its objectives, OPES-LCEF supports a

portfolio of low-carbon and social impact enterprises.

OPES-LCEF selects ventures to invest in that have a clear low carbon and social impact, in doing this OPESLCEF supports sustainable development and the creation of local livelihoods. OPES-LCEF works with a wide range of partners to achieve its goals. It works with not-for-profit, private, and public sector organisations, both overseas and in the UK.

OPES-LCEF seeks through its programmes and partnerships to provide financial resources in a way that results

in a better global environment achieved through sustainable and equitable development.

OPES-LCEF aims to be a responsive and learning organisation that is knowledgeable about the development, aspirations, needs, culture, and environment of its partners. It is committed to encouraging diversity, professionalism, and contestability of ideas among all its members, staff and volunteers.

In 2012, OPES-LCEF (under its previous name LCEF II) entered into a loan agreement with the DOEN Foundation, a Dutch not-for-profit organisation, to support low-carbon enterprises. These funds were used to provide financial support (equity and/or debt) for small-scale enterprises in lower-income countries that are developing and/or delivering low carbon service or products. In total, seven social enterprises have been supported of which two are still in our portfolio.

In 2019, OPES-LCEF received donations from Stichting Opint, a Dutch not-for-profit organisation, in the form of unrestricted cash donations and assets in the form of social enterprises portfolio debt/equity contracts.

In 2020, OPES-LCEF received recoverable grants and grants from the DOEN Foundation and the Good Energies Foundation for the facility “Restart East Africa”. Restart East Africa targeted promising impact enterprises affected by Covid-19 directly or indirectly or those enterprises which had come up with innovative solutions tackling social and environmental issues. Special attention was given to enterprises founded by local female-founders. Within the Restart East Africa program, five social enterprises were supported (see below).

In 2022, OPES-LCEF presented the “Restart Catalyst” facility to the DOEN Foundation and the Good Energies Foundation to continue supporting female founded or co-founded social enterprises in East Africa.

OPES-LCEF ensures that capital is deployed amongst a diverse portfolio of entrepreneurs and beneficiaries.

Public Benefit

The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing OPES-LCEF's aims and objectives and when planning future activities and setting the loan-making policy for the next year.

OPES-LCEF supports environmental, community and sustainable development causes that are of benefit to the public through appropriate charitable, educational, and scientific means. Specifically, OPES-LCEF provides financial and technical support to low-carbon entrepreneurs in the developing world. Emphasis is placed on ventures that also offer broader social benefits to the communities in which they operate. These include protecting local livelihoods, increasing access to clean energy for off-grid communities, creating access to clean water, and supporting sustainable employment.

OPES-LCEF

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance

The coronavirus pandemic hit society in 2021/2022. It was foremost a health emergency, but also dramatically hit the economy. Many small businesses were forced to shut down temporarily or close permanently. During this unprecedented crisis, OPES-LCEF developed the “Restart East Africa” facility that received support from the DOEN Foundation and the Good Energies Foundation.

Restart East Africa targeted promising impact-driven enterprises affected by Covid-19 directly or indirectly and focused on the following sectors: Sustainable Agriculture & Food, Sustainable Energy, Education & Skilling, and Mobility & Transportation. Special attention was given to women-founded or co-founded local teams.

The facility has been fully invested and has supported five social enterprises:

Based on the success of the “Restart East Africa” initiative, the DOEN Foundation and the Good Energies Foundation decided to support a new facility “Restart Catalyst” which will work at the intersection of Climate, Impact & Gender by supporting organisations with gender diverse teams and African local ownership. “Restart Catalyst” will use an impact incentive-linked investment instrument.

Furthermore, regarding the companies in the current portfolio, OPES-LCEF made the second tranche investment in Giffoni Innovation Hub as the impact objectives were reached according to the terms of the investment agreement. Kingo’s series C shareholders exercised their Shortfall Drag-Along Right and Kingo ceased activities while a new company assumed its rights and obligations. Remaining stake in Kingo has been written off.

To better support the operations in East Africa, OPES-LCEF Consulting Limited was established in the end of 2022. The company is fully owned by OPES-LCEF.

Finally, the “sister organization” in Italy, Fondazione Opes Lcef, has supported the Trust by providing grants (both restricted and non-restricted) and a loan.

External Events

The Covid-19 pandemic, and the measures to control its human impact, have resulted in disruptions to economic activity and business operations worldwide.

Furthermore, the invasion of the Russian armed forces in the Ukraine on 24 February 2022 is having – as far as predictable at all – substantial short-term and long-term consequences on all areas of the economy. Many companies have been severely affected by this unfortunately long-lasting conflict and disruption. Even if the portfolio companies have not direct ties and commercial relationships with Ukraine or Russia and their supply chain have not been damaged, we cannot rule out that in the foreseeable future they will be consequences also for these companies.

OPES-LCEF has undertaken an assessment of its plans, as part of its continuity and contingency planning, and the trustees believe it is well placed financially and operationally to withstand the uncertainties ahead. At the date of approval of the financial statements, OPES-LCEF is unable to determine a reliable estimate of the financial impact of the two events on its financial performance and position. The trustees have a reasonable expectation that OPES-LCEF has adequate resources to continue in operational existence for the foreseeable future.

OPES-LCEF

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Financial review

The Statement of Financial Activities, which shows the OPES-LCEF’s incoming resources and expenditure for the year, is set out on page 9.

Total incoming resources amount to $583,086 (2022: $213,371), which comprised restricted donations of $461,123 (2022: $206,212), unrestricted donations of $65,000 (2022: $nil), and investment income from programme related investments of $56,963 (2022: $7,159).

Resources expended on charitable activities amounted to $127,499 (2022: $136,347), of which $101,799 (2022: $104,536) was defrayed on management of programme related investments and $25,700 (2022: $31,811) defrayed on support and governance costs.

OPES-LCEF made foreign exchange losses on its cash balances held in GBP of $5,585 (2022: $5,400). In the year OPES-LCEF made impairment losses on its programme-related investments of $75,347 (2022: $nil).

The resulting net surplus for the year was $374,655 (2022: $71,624).

The charity's statement of financial position, which shows the financial position of the charity as at 31 March

2023, is set out on page 10.

The net book value of the OPES-LCEF's programme related investments at 31 March 2023 was $1,852,849 (2022: $1,577,339).

During the year, the entity incorporated a subsidiary in Kenya, OPES-LCEF Consulting Limited, subscribing for share capital of $803.

Current assets are represented by cash of $575,957 (2022: $158,600) and amounts due from the subsidiary of

$595 (2022: $nil).

OPES-LCEF's liabilities are represented by current liabilities of $25,714 (2022: $21,104) and non-current liabilities including long term loans of $573,839 (2022: $258,839).

The resulting net assets at 31 March 2023 were $1,830,651 (2022: $1,455,996), which represents $721,716 (2022: $452,516) of restricted funds, and $1,108,935 (2022: $1,003,480) of unrestricted funds.

Reserves policy

It is the policy of OPES-LCEF that free reserves which have not been designated for a specific use or applied to make loans in accordance with its general objects, should be maintained at a level equivalent to at least six months' expenditure, that is, approximately $65,000. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue OPES-LCEF's current activities while consideration is given to ways in which additional funds may be raised. At 31 March 2023, OPES-LCEF had free reserves of $10,407. OPES-LCEF has received donations post year end which result in free reserves being brought back in line with the reserves policy.

Risk factors

The trustees have identified, monitored, and reviewed significant risks and have implemented systems and processes to manage and mitigate those risks. The main risks are associated with the financial viability of the investee companies, and their ability to deliver environmental and social benefits for low income communities. The trustees review each investee company during trustee meetings. Where trustees decide that the investee company is unlikely to succeed, the trustees may consider writing down or writing off the investment. No recoverability issues surrounding these loans were identified. The trustees are satisfied with the current risk management procedures in place which they believe satisfactorily mitigate the identified risks.

Plans for future periods

OPES-LCEF’s future plans are to continue to support low carbon and social enterprise entities to benefit low income communities. OPES-LCEF plans to continually support its existing portfolio of programme related investments, to ensure they work in the most efficient and effective way towards achieving their objectives, and will explore opportunities for further funding and investments, in accordance with OPES-LCEF’s objectives.

OPES-LCEF

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Structure, governance and management

OPES-LCEF is a company limited by guarantee, incorporated on 5 March 2012. OPES-LCEF is also a registered charity and is governed by its Memorandum and Articles of Association and the Charities Act 2011. The objectives of OPES-LCEF are as follows:

Sustainable development means "development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

E Casolari

G Freato

B Wenz

None of the trustees have any beneficial interest in OPES-LCEF. All of the trustees are members of the company and guarantee to contribute $1 in the event of a winding up.

Board members use their own network of contacts to identify suitable candidates possessing the necessary knowledge and skills to act as trustees of OPES-LCEF. At the present time, OPES-LCEF has three trustees, which is considered adequate for its purposes. In accordance with paragraph 8.2 of OPES-LCEF’s Articles of Association the number of trustees shall not be less than three.

Trustees are recruited on the basis of their existing relevant knowledge. Information relating to OPES-LCEF’s legal status, finances and activities are provided in advance of appointment. Trustees are expected to identify their training needs and to take measures to ensure that these needs are met.

The trustees may appoint or re-appoint a person who is willing to be a trustee, either to fill a vacancy or as an additional trustee.

The normal term of office for a trustee is three years. A trustee will be eligible for re-election for two further terms of three years.

After a trustee has served three consecutive terms in office, he or she shall be eligible for re-election only after a year has elapsed since he or she retired, unless the board considers it would be in the best interests of OPESLCEF to be eligible for re-election on his or her retirement for such number of terms as the trustees shall resolve.

OPES-LCEF’s policy is set by the trustees. The trustees are also responsible for the management of the charity. Two consultants support the trustees for the day-to-day management, i.e. monitoring and risk assessment of current portfolio, providing management and technical support the entrepreneurs, and identifying and developing relationships with new enterprises.

Fundraising statement

OPES-LCEF’s fundraising model has been focused on existing relationships with institutions, and OPES-LCEF does not solicit or directly contact members of the public.

OPES-LCEF has not engaged with third parties to raise funds. No complaints were received in relation to OPESLCEF’s fundraising activities.

OPES-LCEF

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Statement of trustees' responsibilities

The trustees, who are also the directors of OPES-LCEF for the purpose 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).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small

companies exemption.

The trustees' report was approved by the Board of Trustees.

E Casolari

Trustee Dated: 31 October 2023

OPES-LCEF

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF OPES-LCEF

Opinion

We have audited the financial statements of OPES-LCEF (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the statement of financial position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

OPES-LCEF

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF OPES-LCEF

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities including fraud.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

OPES-LCEF

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF OPES-LCEF

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Hannah Sibley FCA (Senior Statutory Auditor) for and on behalf of Citroen Wells

8 November 2023

Chartered Accountants Statutory Auditor

Devonshire House 1 Devonshire Street London W1W 5DR

OPES-LCEF

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
$
$
Income from:
Donations and legacies
3
65,000
461,123
Investments
4
56,963
-
Total income
121,963
461,123
Expenditure on:
Charitable activities
5
127,499
-
Other gains and losses
9
5,585
-
Total expenditure
133,084
-
Net gains/(losses) on
investments
10
(75,347)
-
Net (outgoing)/incoming
resources before transfers
(86,468)
461,123
Gross transfers between
funds
191,923
(191,923)
Net movement in funds
105,455
269,200
Fund balances at 1 April 2022
1,003,480
452,516
Fund balances at 31 March
2023
1,108,935
721,716		 Total Unrestricted
Restricted
funds
funds
2023
2022
2022
$
$
$
526,123
-
206,212
56,963
7,159
-
583,086
7,159
206,212
127,499
136,347
-
5,585
5,400
-
133,084
141,747
-
(75,347)
-
-
374,655
(134,588)
206,212
-
206,212
(206,212)
374,655
71,624
-
1,455,996
931,856
452,516
1,830,651
1,003,480
452,516		 Total
2022
$
206,212
7,159
213,371
136,347
5,400
141,747
-
71,624
-
71,624
1,384,372
1,455,996

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

OPES-LCEF

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2023

Notes
Fixed assets
Investments
11
Programme related investments
12
Current assets
Other receivables
13
Cash at bank and in hand
Current liabilities
14
Net current assets
Total assets less current liabilities
Non-current liabilities
15
Net assets
Income funds
Restricted funds
16
Unrestricted funds		 2023
$
$
803
1,852,849
1,853,652
595
575,957
576,552
(25,714)
550,838
2,404,490
(573,839)
1,830,651
721,716
1,108,935
1,830,651		 2022
$
$
-
1,577,339
1,577,339
-
158,600
158,600
(21,104)
137,496
1,714,835
(258,839)
1,455,996
452,516
1,003,480
1,455,996

The financial statements were approved by the Trustees on 31 October 2023

E Casolari Trustee

Company Registration No. 07976404

OPES-LCEF

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

OPES-LCEF is a private company limited by guarantee incorporated in England and Wales. The registered office is Devonshire House, 1 Devonshire Street, London, W1W 5DR.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's trust deed, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in US dollars, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest $.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. The trustees have considered the impact of the coronavirus pandemic further in the Trustees' Report.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably and it is probable that income will be received.

Grants are credited to the Statement of Financial Activities when they are receivable. Grants that are awarded for specific purposes are treated as restricted incoming resources.

All other income is unrestricted for the use of achieving the charity's objectives.

1.5 Resources expended

Expenditure is included on an accruals basis. The charity is not registered for VAT and accordingly expenditure is shown gross of irrecoverable VAT.

OPES-LCEF

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.6 Programme related investments

Programme related investments are accounted for at cost less any impairment.

Programme related investments arise when OPES-LCEF provides financial support in the form of low interest loans and/or equity stakes to small entrepreneurial businesses seeking to build a low carbon business.

The expectation is that the loans will be repaid. The trustees review the loans every six months and if there is a risk of non-payment, the loans are provided for.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7 Cash and cash equivalents

Cash and cash equivalents include deposits held at call with banks.

1.8 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in OPES-LCEF's balance sheet when the OPES-LCEF becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include cash and bank balances and other receivables, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including other payables and loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

Financial liabilities are derecognised when OPES-LCEF's contractual obligations expire or are discharged or cancelled.

1.9 Foreign exchange

Transactions in currencies other than US dollars are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/(expenditure) for the period.

OPES-LCEF

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies (Continued)

1.10 Concessionary loans

Concessionary loans are initially measured at amortised cost and then subsequently stated at carrying value adjusted for accrued interest payable.

2 Critical accounting estimates and judgements

In the application of OPES-LCEF's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Programme related investments

Programme related investments are stated at cost less any provision for impairment. The trustees’ have assessed the recoverability of investments made and economic benefit of investments based on market conditions and cashflow estimates. There is an inevitable degree of judgement involved and the valuations of the investments can only ultimately be reliably tested in the market itself.

3 Donations and legacies

Unrestricted Restricted Total Restricted
funds funds funds
2023 2023 2023 2022
$ $ $ $
Donations and gifts 65,000 461,123 526,123 206,212
Unrestricted Unrestricted
funds funds
2023 2022
$ $
Income from programme related investments 56,963 7,159

OPES-LCEF

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

5 Charitable activities

Management of programme related investments
Support costs (see note 7)
Governance costs (see note 7)		 2023
$
101,799
2,607
23,093
127,499		 2022
$
104,536
3,327
28,484
136,347

6 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

7 Support costs

Bank charges
Sundry
Legal and professional
Accountancy/independent examination fees		 Support
costs
Governance
costs
$
$
1,113
-
1,494
-
-
4,022
-
19,071
2,607
23,093		 2023
$
1,113
1,494
4,022
19,071
25,700		 2022
$
1,154
2,173
6,567
21,917
31,811

8 Employees

The charity did not have any employees during the current or prior year.

9 Other gains and losses

Unrestricted Unrestricted
funds funds
2023 2022
Foreign exchange losses/(gains) 5,585 5,400

OPES-LCEF

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

10 Net gains/(losses) on investments
Total Total
2023 2022
$ $
Revaluation of investments (75,347) -
11 Fixed asset investments
Other
investments
Cost or valuation
At 1 April 2022 -
Additions 803
At 31 March 2023 803
Carrying amount
At 31 March 2023 803
At 31 March 2022 -
2023 2022
Other investments comprise: Notes $ $
Investments in subsidiaries 19 803 -

OPES-LCEF

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

12 Programme related investments

At 1 April 2022
Additions
Impairments
Recovered amounts
At 31 March 2023		 $
1,577,339
374,237
(75,347)
(23,380)
1,852,849

Programme related investments arise when OPES-LCEF provides financial support in the form of lowinterest loans and/or equity stakes to small entrepreneurial businesses engaged in low-carbon and social impact enterprises.

Programme related investments comprise $431,285 (2022: $375,000) of investments made from restricted funds and $1,421,564 (2022: $1,202,339) of investments made from unrestricted funds.

The historical cost of the charity's programme related investments held at 31 March 2023 was $2,051,503 (2022: $1,757,608).

13
Other receivables
Amounts falling due within one year:
Amounts owed by subsidiary undertakings
14
Current liabilities
Accruals and deferred income
15
Non-current liabilities
Concessionary loans		 2023
$
595
2023
$
25,714
2023
$
573,839		 2022
$
-
2022
$
21,104
2022
$
258,839

Concessionary loans comprise $258,839 from Stichting DOEN in respect of funding for programme related investments, $250,000 from the DOEN Foundation is respect of funding for the Restart Catalyst Fund and $65,000 from Fondazione OPES-LCEF in respect of funding for operating costs. The $258,839 in respect of funding for programme related investments is interest free, unsecure and repayable upon receipt of amounts recovered from the programme related investments the loan has funded. The $250,000 in respect of funding for the Restart Catalyst Fund (see note 16) is interest free, unsecure and repayable by February 2029, subject to the potential waiver of part of the loan, dependent on certain performance conditions. The $65,000 in respect of funding for operating costs is interest free, unsecure and repayable at the discretion of OPESLCEF itself.

OPES-LCEF

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16 Restricted funds

The income funds of the charity include restricted funds which are held on trust for the specific purposes of the Restart Fund for East Africa, Restart Catalyst Fund, and the Giffoni Innovation Hub.

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Transfers Balance at Incoming Transfers Balance at
1 April 2021 resources 1 April 2022 resources 31 March 2023
$ $ $ $ $ $ $
Restart Fund
For East
Africa 452,516 - - 452,516 - - 452,516
Giffoni
Innovation
Hub - 206,212 (206,212) - 191,923 (191,923) -
Restart
Catalyst Fund - - - - 269,200 - 269,200
452,516 206,212 (206,212) 452,516 461,123 (191,923) 721,716

Restart Fund for East Africa

In 2021, grants totalling $450,000 were received from the DOEN Foundation and the Good Energies Foundation for the Restart Fund for East Africa. Restart Fund for East Africa targets promising impact-driven enterprises affected by Covid-19 directly or indirectly or those enterprises that have come up with innovative solutions for a more sustainable future. The initiative focuses on the following sectors: Sustainable Agriculture & Food, Sustainable Energy, Education & Skilling, and Mobility & Transportation.

As at 31 March 2023, the charity had invested $75,000 in Munyox Eco Ltd, a company registered in Rwanda which provides solar water heaters, energy access systems as well as providing electric power generation, there was capital repayments of $18,715 in the year, $100,000 in WidEnergy Africa Ltd, a company registered in Zambia which provides affordable solar home solutions, $100,000 in Exotic EPZ Ltd, a company registered in Kenya which collects and processes macadamia nuts for the export market, $100,000 in Ecodulu Ltd, a company registered in Kenya who recycles organic waste into animal feed and organic fertilizer, and $75,000 in Kilimo Fresh, a company registered in Tanzania, which offers a platform linking smallholder farmers and buyers in urban areas. Total invested as at 31 March 2023; $450,000.

Giffoni Innovation Hub

A donation of $191,923 was received on 7 December 2022 from Fondazione OPES-LCEF solely for the purpose of investing in Giffoni Innovation Hub Srl. Following the completion of the investment on 15 December 2022 the restriction placed on the above donation has been satisfied. Accordingly, it falls to be classified as unrestricted funds.

Restart Catalyst Fund

During the year, a grant totaling $269,200 was received from the Good Energies Foundation for the Restart Catalyst Fund. Furthermore, OPES-LCEF received a loan from the DOEN Foundation of $250,000 (see note 15) to fund programme related investments in respect of the Restart Catalyst Fund. The Restart Catalyst Fund targets early stage enterprises in East Africa that work on impact-led solutions for a sustainable and inclusive climate resilient future for all. The funds received will be deployed by OPES-LCEF in the year ended 31 March 2024.

OPES-LCEF

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

17 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2023
2023
$
$
Fund balances at 31
March 2023 are
represented by:
Investments
803
-
Programme related
assets
1,421,564
431,285
Current assets/(liabilities)
10,407
540,431
Long term liabilities
(323,839)
(250,000)
1,108,935
721,716		 Total
Unrestricted
funds
2023
2022
$
$ 803
-
1,852,849
1,202,339
550,838
59,980
(573,839)
(258,839)
1,830,651
1,003,480		 Restricted
funds
2022
$ -
375,000
77,516
-
452,516		 Total
2022
$ -
1,577,339
137,496
(258,839
1,455,996

18 Related party transactions

Included in programme related investments is $119,742 (2022: $68,887) representing an equity stake in Fabrica s.r.l., a company registered in Italy, in which the spouse of a E Casolari is a director on a complete pro-bono basis.

During the year the OPES-LCEF received donations of $256,923 (2022: $206,212) from Fondazione OPESLCEF, a charity registered in Italy with common trustees.

Fondazione OPES-LCEF also advanced $65,000 to OPES-LCEF, by way of loan, during the year. The full balance remains outstanding at the year end. See note 15.

During the year OPES-LCEF advanced $595 to its subsidiary, OPES-LCEF Consulting Limited, which remains outstanding at the year end. The balance is interest free, unsecured and repayable on demand.

19 Subsidiaries

These financial statements are separate charity financial statements for OPES-LCEF.

Details of the charity's subsidiaries at 31 March 2023 are as follows:

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct Indirect
OPES-LCEF Consulting Kenya Consultancy services Ordinary 99.00
Limited