## Trustees Annual Report and Financial Statements 2020 


**www.books2africa.org** 

Books To Africa International (trading as Books2Africa) is a UK Registered Charity 1152599, in Special Consultative Status with the United Nations ECOSOC. 



Table of Contents 

**Organisational Profile ............................................................................................. 3** What Is Books2Africa About? ........................................................................................ 3 Our Founding Principles ................................................................................................. 4 Two Things We Want To Change .................................................................................. 5 1 Million Books Club ....................................................................................................... 7 The Journey of a Book .................................................................................................... 8 The Impact of a Book ..................................................................................................... 9 Governance ................................................................................................................... 10 **Trustees Annual Report 2020 ............................................................................... 11 Key Peformance Indicators 2020 .......................................................................... 12 Independent Examiners Report 2020 .................................................................... 16 Statement of Financial Activities 2020 .................................................................. 17 Statement of Financial Position 2020 ................................................................... 18 Notes To the Financial Statements 2020............................................................... 19** 

Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 2 



## Organisational Profile 

## What Is Books2Africa About? 

Books To Africa International (trading as Books2Africa) is a UK registered charity number 1152599 founded in 2012 that is committed to addressing two major problems faced by two communities simultaneously: 

✓ **Reducing environmental waste in the UNITED KINGDOM** ✓ **Improving the quality of education in AFRICA** . 

The charity achieves these dual objectives through the collection of books and educational resources that would otherwise be sent to landfill by individuals and organisations in the United Kingdom, processing, shipping, and distributing them instead to individuals and communities across Africa, where their use leads to an immediate and remarkable improvement in the quality of education for those in need. 


**Our mission is to improve the quality of education in Africa through the provision of books, computers and educational resources that enable students to acquire knowledge and achieve their full potential in a globalized world.** 

Books2Africa was founded in 2012 by 4 African students from the same family whose parents sponsored them to attend university in the UK. The charity has since shipped and distributed more than 1 million books to individuals and organisations across 20 African countries. The charity’s current goal is to collect **1 million books every year** that would otherwise go to landfill in the UK, processing, shipping, and distributing them to improve the quality of education for individuals and communities in need across Africa. As an organisation in Special Consultative Status with the United Nations ECOSOC, Books2Africa’s work is contributing towards achieving the United Nation’s Sustainable Development Goals 4 and 12. 

## **This document sets out the operational and financial performance of the charity and how, with your support as a collaborator, the charity’s objectives and goals can continue to be achieved.** 

Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 3 



## Our Founding Principles 

As an organisation that works within very diverse communities in the UK and across the African continent, Books2Africa’s approach is centred upon three key foundational principles that are shared by the founders as well as our supporters: 


## **African-led Global Collaboration** 

Books2Africa is an organisation founded by African students in 2012, whose vision and passion for the continent’s development continue to guide the charity’s operational model and strategic priorities, within a framework that enables international collaboration and mutual respect. Books2Africa’s founding members continue to play active roles within the Board of Trustees, together with Honorary Trustees who are appointed according to their expertise, ensuring the Board reflects the diversity within the communities served by the charity. 

## **Universal Education** 

Books2Africa’s definition of education is centred on a perspective of the world as a global community where different nations and civilisations can learn from one another to advance human development. Because every culture has something to teach us, sending Shakespeare’s _Hamlet_ to a reader in Africa, or promoting Achebe’s _Things Fall Apart_ to readers in the UK enables us to foster a more tolerant global community where donors and beneficiaries are equal collaborators. As such, the books we provide are determined by the curiosity and requests of the readers we serve. 

## **Environmental and Financial Sustainability** 

Books2Africa accepts donations of not only new books but used books and educational resources too from the public, ensuring that more than 600 tonnes of books from UK households and the book trade are diverted from landfill yearly and _readcycled_ . Furthermore, the overheads of the charity are funded from its Charity Shop, ensuring that 100% of donated funds are spent on shipping books to Africa for distribution. With the knowledge and consent of our book donors, up to 20% of donated books are traded via our UK Charity Shop, keeping the charity financially sustainable. 

Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 4 



Two Things We Want To Change 


## **1. Millions of books are being sent to landfill every year!** 

At least 13 million books, many in good and reusable condition, are thrown away and go to landfill in the UK every year according to conservative estimates by CODEP. 


_Tessa Boase, a University of Oxford Alumna and Books2Africa Sponsor._ 

## **Motivated By The Environment** 

“I’d feel so terribly sorry if these books, which are such wonderful things, ended up in landfill as if they were rubbish. Good books are to be treasured. I can’t bear to see books being treated like rubbish, so I wanted to find a more meaningful life for them. It’s not just dumping a box of charitable leftovers – you’re providing a specific, thoughtful service, which is great. Also, we have so many books here [in the UK], and I don’t like just taking them to a charity shop, where they’re just sitting in a box – we’ve got a surplus of books, and it’s really nice for them to go where they really will be appreciated, and pored over, and will inform young minds.” 

## **Read more on our website** 

**Like Tessa, several Books2Africa’s supporters wish to extend the life of their books and feel strongly about conserving the environment. Books2Africa currently receives an average of 80,000 donated books every month from across the UK.** 



Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 5 




## **2. Millions of students attending school in Africa are not learning!** 

The poor quality of education especially in rural parts of Africa as well as the unaffordability of educational resources discourages families especially those below the poverty line, from sending their children to school. 


_This Secondary School in Ganawuri, Nigeria, has classrooms with no desks, chairs, or books – a problem quite common in public schools across rural parts of Africa._ 

## **Motivated By Education** 

According to UNESCO’s and The World Bank’s latest reports, 90% of children who attend school in Africa (202 million children) still cannot read or write proficiently after finishing school in part because they lack books and educational resources. This was also echoed in a research by Fredriksen and Brar (2015, p3) which found that most Sub-Sahara African countries face severe book shortages even in core subjects. According to Fredriksen and Brar, the shortages of teaching and learning materials undermine quality learning, and investments in teaching and learning materials would likely have great impact on student achievements than investing the same amount of resources in other education inputs. 

**Read more on our website** 

**More than 100,000 books are requested by projects across Africa every month through Books2Africa’s online book request application form. Despite having enough donated books to meet this demand, majority of these projects cannot afford to fund the shipment cost, leaving the charity to rely on individual and corporate sponsors (The 1 Million Books Club).** 


Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 6 



1 Million Books Club 





Your donation of Your donation of Your donation of **£8,000** ships a 40ft **£5,000** ships a 20ft **£500** ships a pallet container of **40,000** container of **20,000** of **1,000** books. books. Enough books. Enough Enough books for books for a books for all the one school or community or schools in a rural departmental university library. community. library. 





Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 7 



The Journey of a Book 


**Your books set-off on a voyage across the world, finding their way from your quiet shelves to the curious hands of a student or teacher in Africa where they’ll find new life and their pages will turn once again…but not without your help!** 






**After 4-6 weeks travelling across the ocean, your books arrive, go through customs, and are delivered to the hands of students and teachers who joyfully welcome them with open minds.** 

**Every journey begins with packing and saying goodbye. But not to worry, your beloved books will soon be bringing joy and knowledge to someone else.** 

**Your books arrive our UK Processing Centre where they are catalogued and sorted into categories ready for departure. But they cannot set sail without funding.** 

**Collection Fee** contribution by **Shipping Fee** contribution by book donors pay for first trip to monthly donors and sponsors our UK Warehouse to be checked club pay for second trip to a and processed, ready for boarding. seaport in an African country. 



**Distribution Fee** contribution by recipients or their sponsors cover the cost of clearing, haulage, and local delivery. 

Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 8 



## The Impact of a Book 


**----- Start of picture text -----**<br>
FEATURED PROJECT<br>**----- End of picture text -----**<br>


## **Milestone Academy, Tanzania** 


“We have seen improvements in all aspect of the language, plus children have developed a tendency of reading books and this has helped them improve their creativity and vocabulary.” 

|**Books**<br>**Delivered**<br>1,000|**Students**<br>**Impacted**<br>300|**Teachers**<br>**Impacted**<br>25|**Community**<br>**Impacted**<br>Dar Es Salaam|
|---|---|---|---|



- Shipment sponsored by Milestone Academy. 

- Books delivered 27 November 2019. 

- Impact report published 24 February 2020 . Read the full report at - - 

- https://books2africa.org/milestone academy tanzania/ 

Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 9 



Governance 

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended **31 December 2020.** 

## **Reference and Administrative Details** 

Charity Registered Name Books To Africa International Registered Trademark Books2Africa Charity Registration No 1152599 Company Registration No 08528635 Unit 2, Barton Business Park, New Dover Principal and Registered Office Road, Canterbury, Kent, CT1 3AA www.books2africa.org Charity Contact Details info@books2africa.org +441227392239 Dr T Sango – Founding Trustee Dr P Sango – Founding Trustee Mr C Sango – Founding Trustee Trustees Mr G Sango – Founding Trustee Ms A Kieffer – Honorary Trustee Ms A Nandan – Honorary Trustee Tracey Pearcy FCCA Independent Examiner 12 Dover Street, Canterbury, Kent, CT1 3HD 

## **Structure and Governance** 

Books To Africa International is a registered company limited by guarantee (08528635) and a registered charity (1152599) in the UK. 

## **Objectives and Activities** 

Books2Africa is a UK registered charity that is improving the quality of education in Africa through the provision of books, computers & educational resources that enable individuals & communities to acquire knowledge & achieve their full potential in a globalized world. The charity collects, sorts & ships books & donated educational resources from individuals & organisations, reducing waste & increasing ‘readcycling’. 

Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 10 



## Trustees Annual Report 2020 

## **Directors’ Report** 

2020 will be remembered as the year that the Coronavirus (COVID-19) brought the entire world to a stand-still! Like most, the pandemic caught us by surprise and affected our operations in several ways. Thankfully, none of our team members lost their lives and by quickly putting emergency safety measures in place, we managed to achieve zero cases of COVID on site! 

In March 2020, the UK government initiated the first total lockdown and we had to stop operations for a few weeks. During this period, we rapidly put in place and improved upon existing measures that allowed us to initiate a staggered return at our UK Processing Centre within a month, with our admin, fundraising, marketing, and tech teams working from home. These measures included layout changes and one-way systems, workstation dividers, social distancing markers and signage, wearing of facemasks, temperature checks, hand sanitising and a more rigorous cleaning regime. 

With the sudden interruption to cash donations and charity shop income, we applied and received a COVID-19 grant from the Canterbury City Council as well as a Bounce Back Loan through our bank. These cash injections enabled the charity to make more permanent adjustments to resume operations fully and remain COVID compliant. These adjustments included, but not limited to; installation of a split-unit air conditioning system to help improve airflow within enclosed spaces and the renovation/conversion of a storage bay into a working area to expand our Tech Refurbishing Programme and better accommodate social distancing. Furthermore, 4 of 5 Books2Africa Distribution Centres in Africa shut down because of the pandemic, which prompted us to accelerate the development of Books2Africa Curiosity Front End - our online book catalogue that enables people in Africa to browse, reserve and receive available books without the need to visit our Distribution Centres in person. 

Despite the challenges of COVID-19, our brave team members remained committed to the cause! We collected and saved close to 400,000 books from going to landfill in the UK, processed and shipped close to 500,000 books to individuals and communities across Africa and re-launched our Technology Refurbishing Programme allowing people to request Personal Study Kits for working or studying from home. 

So, a huge thank you to all our team members, supporters, and sponsors. Although the pandemic is not over yet, we are more confident about the future knowing that we can always count on your support, even in such difficult times. 

Thank you! 

**Dr Tonson Sango On behalf of the Board of Trustees** 

Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 11 



## Key Peformance Indicators 2020 


## **Books Saved From Landfill in the UK** 

This KPI measures how many books individuals and organisations donated to Books2Africa during the year as opposed to sending them to landfill in the UK. 

> **Year Total 398,000 Yearly Target 1,200,000** 



## **Books Requested By People Across Africa** 

This KPI measures how many books individuals and organisations in Africa requested from Books2Africa via our online Book Request Application Form. 

> **Year Total 1,569,246 Yearly Target 1,000,000** 


Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 12 




## **Books Shipped To People Across Africa** 

This KPI measures how many books were shipped from the UK to Africa, directly to individuals and organisations, and indirectly via Books2Africa Distribution Centres. 

> **Year Total 475,341 Yearly Target 1,000,000** 



## **Computers Requested By People Across Africa** 

This KPI measures how many laptops and desktops, individuals and organisations in Africa requested from Books2Africa via our online Book Request Application Form and online Personal Study Kit Application Form. 

> **Year Total 123 Yearly Target 1,000** 


Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 13 




## **Computers Shipped To People Across Africa** 

This KPI measures how many laptops and desktops were shipped from the UK to Africa, directly to individuals and organisations, and indirectly via Books2Africa Distribution Centres, as part of Book Shipments or Personal Study Kits. As our Tech Refurbishing Programme was re-launched in October 2020, there was insufficient data on our Admin Dashboard to generate a chart. 


**----- Start of picture text -----**<br>
Year Total 13 Yearly Target 1,000<br>**----- End of picture text -----**<br>



## **Books Sold Via Charity Shop To Fund Overheads** 

This KPI measures how many books were sold via our Charity Shop, online and in store, to raise money to fund the charity’s overhead costs – rent, rates, bills, staff, stationery, etc. 

> **Year Total 19,355 Yearly Target 200,000** 


Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 14 




## **Countries Impacted in Africa** 

This KPI measures how many countries in Africa have received books or computers from Books2Africa. 


**----- Start of picture text -----**<br>
Year End Total 21 Overall Target 55<br>**----- End of picture text -----**<br>



Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 15 



Independent Examiners Report 2020 

I report to the trustees on my examination of the financial statements of Books to Africa International ('the charity') for the year ended 31 December 2020. 

## **Responsibilities and basis of report** 

As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act’). 

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. 

## **Independent examiner's statement** 

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 

1. Accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or 

2. The financial statements do not accord with those records; or 

3. The financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or 

4. The financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

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


________________________________________ 

**Tracey Pearcy FCCA** Levicks Chartered Accountants, 12 Dover Street, Canterbury, Kent, CT1 3HD. 

Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 16 



Statement of Financial Activities 2020 

## **INCOME AND EXPENDITURE ACCOUNT** 

|||||||
|---|---|---|---|---|---|
|**Year Ended 31 December 2020**|**Note**|**Unrestricted**<br>**Funds**<br>**£**|**Restricted**<br>**Funds**<br>**£**|**Total Funds**<br>**2020**<br>**£**|**Total Funds**<br>**2019**<br>**£**|
|||||||
|**Income and Endowments**||||||
|Donations and legacies|**5**|56,303||**56,303**|61,206|
|Charitable activities|**6**|207,317||**207,317**|92,470|
|Other income|**7**|3,339||**3,339**|2,554|
|||||||
|**Total Income**||**266,959**||**266,959**|**156,230**|
|||||||
|**Expenditure**<br>Expenditure on charitable activities<br>Other expenditure|**8,9**<br>**10**|272,439<br>9,002||**272,439**<br>**9,002**|167,705<br>(42,501)|
|**Total Expenditure**||**(281,441)**||**(281,441)**|**(125,204)**|
|**Net (expenditure)/income and net**<br>**movement in funds**||**(14,482)**||**(14,482)**|**31,026**|
|**Reconciliation of Funds**<br>Total funds brought forward||56,397|(41,640)|**14,757**|(16,269)|
|**Total Funds carried forward**||**41,915**|**(41,640)**|**275**|**14,757**|



The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 

## **The notes on pages 19 to 27 form part of these financial statements.** 

Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 17 



## Statement of Financial Position 2020 

|**31 December 2020**|**Note**|**2020**|**2020**|2019|2019|
|---|---|---|---|---|---|
|||**£**|**£**|£|£|
|**FIXED ASSETS**||||||
|Tangible fixed assets|**15**||**11,304**||15,073|
|||||||
|**CURRENT ASSETS**||||||
|Stocks|**16**|**40,000**||55,000||
|Debtors|**17**|**15,826**||1,612||
|Cash at bank and in hand||**998**||5,473||
|||**56,824**||62,085||
|**CREDITORS: amounts falling due**<br>**within one year**|**18**|**21,501**||27,424||
|**NET CURRENT ASSETS**|||**35,323**||34,661|
|**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**|||**46,627**||49,734|
|**CREDITORS: amounts falling due after**<br>**more than one year**|**19**||**46,352**||34,977|
|**NET ASSETS**|||**275**||14,757|
|**FUNDS OF THE CHARITY**<br>Restricted funds<br>Unrestricted|||**(41,640)**<br>**41,915**||(41,640)<br>56,397|
|**Total Charity Funds**|**22**||**275**||14,757|



For the year ending 31 December 2020 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. 

Directors' responsibilities: 

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476; 

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements. 

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime. 

These financial statements were approved by the board of trustees and authorised for issue on **17 September 2021** , and are signed on behalf of the board by: 

|_____________________________________|_____________________________________|
|---|---|
|Dr Tonson Sango|Dr Precious Sango|
|Director|Director|



Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 18 

**The notes on pages 19 to 27 form part of these financial statements.** 



## Notes To the Financial Statements 2020 

## **1. General information** 

The charity is a private company limited by guarantee, incorporated and registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Unit 2, Barton Business Park, New Dover Road, Canterbury, Kent, CT1 3AA. 

## **2. Statement of compliance** 

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006. 

## **3. Accounting policies** 

## **Basis of preparation** 

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value in accordance with FRS 102. 

## **Going concern** 

There are no material uncertainties about the charity's ability to continue. 

## **Income tax** 

The taxation expense recognised in the Statement of Financial Activities represents the aggregate amount of current and deferred tax recognised in the reporting period. 

Current tax is recognised on taxable income or expenditure for the current and past periods. Current tax is measured at the amounts of tax expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted at the reporting date. 

## **Fund accounting** 

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal. 

## **Incoming resources** 

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction 

Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 19 



will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: 

- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. 

- legacy income is recognised when receipt is probable and entitlement is established. 

- income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. 

- income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted. 

## **Resources expended** 

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: 

- expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods. 

- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. 

- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities. 

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis. 

## **Intangible assets** 

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably. 

Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 20 



## **Amortisation** 

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows: 

Goodwill - 100% straight line Social Media Hits - 100% straight line 

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates. 

## **Tangible assets** 

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. 

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities. 

## **Depreciation** 

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: 

|Motor Vehicles|-|25% reducing balance|
|---|---|---|
|Computer Equipment|-|25% reducing balance|
|Furniture Equipment|-|25% reducing balance|



## **Impairment of fixed assets** 

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units. 

## **Stocks** 

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. 

Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 21 



## **Finance leases and hire purchase contracts** 

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. 

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability. 

## **Financial instruments** 

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or parable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. 

## **Defined contribution plans** 

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. 

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises. 

## **4. Limited by guarantee** 

Books To Africa International is a company limited by guarantee and accordingly does not have a share capital. 

Each member of the company undertakes to contribute such amounts as may be required not exceeding £1 to the assets of the charitable company in the event of it's being wound up while he or she is a member, or within one year after he or she ceases to be a member. 

Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 22 



## **5. Donations and Legacies** 

||Unrestricted<br>Funds<br>£|**Total Funds**<br>**2020**<br>**£**|Unrestricted<br>Funds<br>£|Total Funds<br>2019<br>£|
|---|---|---|---|---|
|**DONATIONS**|||||
|Single Donations|11,492|**11,492**|18,906|18,906|
||||||
|**GRANTS**|||||
|Grants receivable|19,811|**19,811**|42,300|42,300|
|Small business supportgrant|25,000|**25,000**|-|-|
||**56,303**|**56,303**|**61,206**|**61,206**|



## **6. Charitable activities** 

||Unrestricted<br>Funds<br>£|**Total Funds**<br>**2020**<br>**£**|Unrestricted<br>Funds<br>£|Total Funds<br>2019<br>£|
|---|---|---|---|---|
|Book Sales|75,341|**75,341**|32,235|32,235|
|International shipping|60,575|**60,575**|26,972|26,972|
|Collections|71,401|**71,401**|33,263|33,263|
||**207,317**|**207,317**|**92,470**|**92,470**|



## **7. Other income** 

||Unrestricted<br>Funds<br>£|**Total Funds**<br>**2020**<br>**£**|Unrestricted<br>Funds<br>£|Total Funds<br>2019<br>£|
|---|---|---|---|---|
|Gift Aid Income|**207,317**|**207,317**|92,470|92,470|



## **8. Expenditure on charitable activities by fund type** 

||Unrestricted<br>Funds<br>£|**Total Funds**<br>**2020**<br>**£**|Unrestricted<br>Funds<br>£|Total Funds<br>2019<br>£|
|---|---|---|---|---|
|Charitable Activity|251,641|**251,641**|167,042|167,042|
|Support costs|20,798|**20,798**|663|663|
||**272,439**|**272,439**|**167,705**|**167,705**|



## **9. Expenditure on charitable activities by activity type** 

||Activities<br>undertaken<br>directly<br>£|Support<br>Costs<br>£|**Total Funds**<br>**2020**<br>**£**|Total Funds<br>2019<br>£|
|---|---|---|---|---|
|Charitable Activity|251,641|-|**251,641**|167,042|
|Governance costs|-|20,798|**20,798**|663|
||**251,641**|20,798|**272,439**|**167,705**|



Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 23 



## **10. Other expenditure** 

||Unrestricted<br>Funds<br>£|**Total Funds**<br>**2020**<br>**£**|Unrestricted<br>Funds<br>£|Total Funds<br>2019<br>£|
|---|---|---|---|---|
|Sub Contract Labour|**9,002**|**9,002**|(42,501)|(42,501)|



## **11. Net (expenditure)/income** 

Net (expenditure)/income is stated after charging/(crediting): 

||**2020**<br>**£**|2019<br>£|
|---|---|---|
|Sub Contract Labour|**9,002**|(42,501)|



## **12. Independent examination fees** 

||**2020**<br>**£**|2019<br>£|
|---|---|---|
|Fees payable to the independent examiner for:<br>Independent examination of the financial statements|**500**|500|



## **13. Trustee remuneration and expenses** 

One or more trustees has been paid remuneration or received other benefits from employment with the charity. The trustees Dr T Sango and Dr P Sango have received money in relation to costs incurred in the running of the charity and subsistence payments whilst working on the charity’s behalf. Dr T Sango started a new employment with the charity on 1 June 2020. The employment contact is in agreement with the Memorandum & Articles. The trustee (Mr T Sango) will remain Chair of the Board of Trustees but has lost his voting rights. The charity has repaid £15,705 by the year end clearing all amounts due to the trustees by the charity (2019 - £15,705). Dr P Sango had lent the charity on a 3-year term £20,000, starting in April 2017, which has been fully repaid in the year at 0% interest as agreed with the trustee in the previous year. 

## **14. Intangible assets** 

||Goodwill<br>£|Development<br>costs<br>£|**Total**<br>**£**|
|---|---|---|---|
|**Cost**<br>**At 1 January 2020 and 31 December 2020**|16,315|306|**16,621**|
|**Amortisation**<br>**At 1 January 2020 and 31 December 2020**|16,315|306|**16,621**|
|**Carrying amount**<br>**At 31 December 2020**|-|-|**-**|
|At 31 December 2019|-|-|**-**|



Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 24 



## **15. Tangible fixed assets** 

||Motor<br>vehicles<br>£|Equipment<br>£|Furniture<br>Equipment<br>£|**Total**<br>**£**|
|---|---|---|---|---|
|**Cost**<br>**At 1 January 2020 and**<br>**31 December 2020**|20,097|1,491|5,920|**27,508**|
|**Depreciation**<br>At 1 January 2020<br>Charge for the year||||**12,435**<br>**3,769**|
||8,792<br>2,827|902<br>147|2,741<br>795||
|**At 31 December 2020**|11,619|1,049|3,536|**16,204**|
|**Carrying amount**<br>**At 31 December 2020**|8,478|442|2,384|**11,304**|
|At 31 December 2019|11,305|589|3,179|**15,073**|



## **16. Stocks** 

||**2020**<br>**£**|2019<br>£|
|---|---|---|
|Raw materials and consumables|**40,000**|**55,000**|



The value of stock at the year end is £40,000. This represents 400,000 books which have been sorted, cleaned and boxed ready for shipping. The estimated market value of the stock to replace would cost at least £400,000. Therefore, it would cost the charity £400,000 to replace this stock. 

## **17. Debtors** 

||**2020**<br>**£**|2019<br>£|
|---|---|---|
|Prepayments and accrued income<br>Other debtors|**8,358**<br>**7,468**|-<br>1,612|
||**15,826**|**1,612**|



## **18. Creditors: amounts falling due within one year** 

||**2020**<br>**£**|2019<br>£|
|---|---|---|
|Bank loans and overdrafts<br>Accruals and deferred income<br>Social security and other taxes<br>Director loan accounts<br>Other creditors|**4,399**<br>**1,000**<br>**1,102**<br>**-**<br>**15,000**|3,320<br>1,000<br>-<br>15,705<br>7,399|
||**21,501**|**27,424**|



Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 25 



## **19. Creditors: amounts falling due after more than one year** 

||**2020**<br>**£**|2019<br>£|
|---|---|---|
|Bank loans and overdrafts<br>Obligations under finance leases and hire purchase contracts<br>Dr P Sango Loan|**36,400**<br>**9,952**<br>**-**|-<br>14,977<br>20,000|
||**46,352**|**34,977**|



## **20. Finance leases and hire purchase contracts** 

The total future minimum lease payments under finance leases and hire purchase contracts are as follows: 

||**2020**<br>**£**|2019<br>£|
|---|---|---|
|Not later than 1 year<br>Later than 1 year and not later than 5 years|**9,059**<br>**893**|4,508<br>10,469|
||**9,952**|**14,977**|



## **21. Pensions and other post-retirement benefits** 

## **Defined contribution plans** 

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £416 (2019: £Nil). 

## **22. Analysis of charitable funds** 

## **Unrestricted funds** 

||At 1<br>January<br>2020<br>£|Income<br>£|Expenditure<br>£|**At 31**<br>**December**<br>**2020**<br>**£**|
|---|---|---|---|---|
|General funds|56,397|266,959|(281,441)|**41,915**|
||At 1<br>January<br>2019<br>£|Income<br>£|Expenditure<br>£|**At 31**<br>**December**<br>**2019**<br>**£**|
|General funds|25,371|156,230|(125,204)|**56,397**|



Books2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 26 



## **Restricted funds** 

||At 1<br>January<br>2020<br>£|Income<br>£|Expenditure<br>£|**At 31**<br>**December**<br>**2020**<br>**£**|
|---|---|---|---|---|
|Restricted fund|(41,640)|-|-|**(41,640)**|
||At 1<br>January<br>2019<br>£|Income<br>£|Expenditure<br>£|**At 31**<br>**December**<br>**2019**<br>**£**|
|Restricted fund|(41,640)|-|-|**(41,640)**|



## **23. Analysis of net assets between funds** 

||Unrestricted<br>Funds<br>£|**Total Funds**<br>**2020**<br>**£**|
|---|---|---|
|Tangible fixed assets<br>Current assets<br>Creditors less than 1 year<br>Creditors greater than 1 year|11,304<br>56,824<br>(18,901)<br>(48,952)|**11,304**<br>**56,824**<br>**(18,901)**<br>**(48,952)**|
|**Net assets**|275|**275**|
||Unrestricted<br>Funds<br>£|**Total Funds**<br>**2019**<br>**£**|
|Tangible fixed assets<br>Current assets<br>Creditors less than 1 year<br>Creditors greater than 1 year|15,073<br>62,085<br>(27,424)<br>(34,977)|**15,073**<br>**62,085**<br>**(27,424)**<br>**(34,977)**|
|**Net assets**|14,757|**14,757**|



## **24. Donated goods and volunteers** 

The charity receives most of its stock through books donated from organisations within the UK. The value has been placed at 10p per book as this reflects the work involved of preparing the books ready for shipping to Africa. 

Volunteers also offer their labour free of charge as and when they are needed and available. 

## **25. Related parties** 

There were no related parties’ transactions in the year. 

For more information, contact us viaBooks2Africa Trustees Annual Report and Financial Statements, 2020. Pg. 27 **www.books2africa.org**