OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

Charity no. 1153897

Hope for Life Katanga Report and Unaudited Financial Statements

31 December 2020

Hope for Life Katanga

Reference and administrative details

For theyear ended 31 December 2020 For theyear ended 31 December 2020
Charity number 1153897
Registered office 50 Westway
Nailsea
Bristol
BS48 2NB
Trustees The trustees who served during the year and up to the date of this
report were as follows:
Mark Walters - Chair
Megan Walters - Co-Founder
Joshua Mutebe - Co-Founder
Chris Boddy (appointed December 2020)
Laura Harris
Chris Collier - Secretary
Laura Richards - Treasurer
Uganda Director Francis Nkurunziza
UK Director Chris Boddy
Co-Founders Joshua Mutebe
Moses Ssempebwa
Megan Walters
Mark Walters
Bankers Lloyds TSB
Ariel House
2138 Coventry Road
Birmingham
B26 3JW
Independent examiner Kimberley Scott
9 Apollo Court
Monkton Business Park South
Hebburn
NE31 2ES

1

Hope for Life Katanga

Report of the trustees

For the year ended 31 December 2020

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Constitution and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Structure, governance and management

Hope for Life Katanga is a UK registered charity, which has a constitution as its governing document. Trustees are appointed at general meetings by a majority vote of existing trustees. The trustees of the charity ensure that the work of Hope for Life Katanga is carrying out its stated aims and objectives, is compliant with charity and local law, and is financially sustainable. The board of trustees have three sub-groups to support these functions: Vision & Strategy, Audit & Risk, Events & Fundraising.

Hope for Life Katanga is a registered Community Based Organisation, with the Kampala City Council Authority, which sees the voices and participation of the community play an important role in the design and implementation of projects towards the charity’s aims and objectives. The charity’s operations are headed up by the charity’s Director, with direct support from the charity’s co-founders, who together form the Vision & Strategy sub-group.

Objectives

The objectives of Hope for Life Katanga are to enable families, in Uganda, to realise their potential towards living a self-sufficient life, free from living in conditions of poverty.

In 2020, we have worked towards these objectives by:

Public benefit

The programmes we run allow us to provide routes out of poverty for some of the most vulnerable people in Katanga. As trustees of Hope for Life Katanga, we are satisfied that our programmes provide a sufficient level of benefit to ensure compliance with the guidance on public benefit issued by the Charity Commission.

Activities and achievements

The charity’s programmes were disrupted because of the Covid-19 outbreak and the related government restrictions in March 2020. As a result, our programmes have had to adapt to ensure we provide sufficient support for families working towards becoming self-sufficient.

2

Hope for Life Katanga

Report of the trustees

For the year ended 31 December 2020

a) Educating children (5-15 years old), to increase their future potential of earning a sustainable income.

“Before getting the question papers [that HFL provided] I had no school assignments to keep me busy but now I do. They have helped me remember some of the things we studied at school”. Patrick, P.6 Student

"I want to be a teacher, teaching Mathematics. I want to see people I taught successful in life, with good jobs.” ~ Godfrey, P.7 Student

b) Equipping young adults (15-25) and parents, through vocational education, training and support, towards earning a self-sufficient income.

“I [attend] one of the best institutions in Kampala, of which I am doing Nursery Teaching, and I am pursuing a Diploma in it. I am much privileged because I have got a skill in teaching. I personally have other relatives, I hope that when I’m done with this course, I will earn a living of which I will be helping my siblings, my parents, my friends and all.” ~ Catherine

“Hope for Life helped find me a foster family in 2013 as a child. While at school I became pregnant. Even when I became pregnant, Hope for Life helped care for me. I had a safe delivery and they continued supporting me and my baby. They helped me acquire a vocational skill. I hope to finish my course in hairdressing this year, so that I work and be able to look after myself and my child, be able to support my child in their education, and to be able to help other vulnerable people. ~ Namataka

3

Hope for Life Katanga

Report of the trustees

For the year ended 31 December 2020

c) Preventing ill-health impacting education, training and employment opportunities, through healthcare education, guidance and treatment.

“The Covid-19 pandemic has had adverse effects on our livelihoods, it has affected our work and most of us no longer have work. Hope for Life has been supporting us during this period. We have been receiving food relief packages, which are helping us go through this tough time.” ~ Robert

“The Covid-19 pandemic period has not hit us so hard like other people because our organisation, Hope for Life, has been giving us food relief packages. Uncle Francis (Director) has done a tremendous job looking after us and our families. I would like to also thank our donors for caring about us. May God bless you all.” ~ Margaret

We want to thank all the businesses, NGOs, Trusts, churches and individuals who have supported the work of Hope for Life Katanga through 2020. Special mention to all those who responded to our Covid-19 appeals through the year, adding to the donations of HealthTree Uganda for the provision of our healthcare support.

Plans for 2021

Our strategic goals for 2021 include:

Financial review

Total income for the period was £38,467 (2019: £41,088), a small decrease in total of 7% on the prior year due to receiving an early grant installment in 2019. Excepting this timing difference, income from planned monthly giving, one-off donations and gift aid all increased during 2020.

Total expenditure was £35,458 (2019: £34,006) however spending between programmes varied considerably in 2020, with greater spend on healthcare, community support and emergency food parcels and lower spend on school fees due to local school closures throughout the year.

Total funds held at 31 December 2020 are £22,113 (2019: £19,104), of which £14,236 (2019: £12,221) are held in restricted funds. The charity has a healthy balance on unrestricted funds of £7,877 (2019: £6,883) which will allow us to continue to develop our programmes and community support throughout 2021.

4

Hope for Life Katanga

Report of the trustees

For the year ended 31 December 2020

Reserves policy

The trustees continue to review Hope for Life Katanga’s need for reserves in line with the guidance issued by the Charity Commission and have adopted a policy to set aside funds of approximately three months core running costs, which is estimated to be £3.8k.

The approval of a majority of trustees is required before the reserve fund can be used for any purpose and it may only be used in the case of an emergency, or to prevent an emergency occurring. An emergency can be considered as any event that would cause the staff or beneficiaries of Hope for Life Katanga to face life altering or life-threatening circumstances.

As at 31 December 2020 the balance of the reserve fund (including amounts held in other cash accounts) was £3.8k (2019: £3.8k).

Going concern and Covid-19

The trustees have considered the risks, including the impact of Covid-19, and these include the ability for the charity to carry out its support in an environment where social distancing rules and restrictions are expected to be in force for some time. The charity’s activities will need to respond and adapt to ensure we continue to provide sufficient support for families working towards becoming self-sufficient. The trustees are confident that costs will only be incurred to the extent that income is secured. For this reason the accounts are prepared on the going concern basis.

Statement of responsibilities of the trustees

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with 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).

The law applicable to charities in England and Wales 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 the incoming resources and application of resources, including the net income or expenditure, of the charity for the year. In preparing those financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the constitution. The trustees 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.

5

Hope for Life Katanga

Report of the trustees

For the year ended 31 December 2020

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the trustees on 1 September 2021 and signed on their behalf by

Chris Collier

Chris Collier - Trustee

6

Independent examiner's report

To the trustees of

Hope for Life Katanga

I report to the trustees on my examination of the accounts of Hope for Life Katanga (the Trust) for the year ended 31 December 2020, which are set out on pages 8 to 19.

Responsibilities and basis of report

As trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

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

Independent examiner’s statement

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

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

Date: 02/09/2021

Kimberley Scott 9 Apollo Court Monkton Business Park South Hebburn NE31 2ES

7

Hope for Life Katanga

Statement of financial activities

For the year ended 31 December 2020

Restricted
Unrestricted
Note
£
£
Income from:
Donations
3
25,164
13,300
Investments
-
3
Total income
25,164
13,303
Expenditure on:
Raising funds
-
81
Charitable activities
25,084
10,293
Total expenditure
4
25,084
10,374
Net income / (expenditure)
80
2,929
Transfers between funds
1,935
(1,935)
Net movement in funds
5
2,015
994
Reconciliation of funds:
Total funds brought forward
12,221
6,883
Total funds carried forward
14,236
7,877		 2020
Total
£
38,464
3
38,467
81
35,377
35,458
3,009
-
3,009
19,104
22,113		 2019
Total
£
41,083
5
41,088
38
33,968
34,006
7,082
-
7,082
12,022
19,104

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 12 to the accounts.

8

Hope for Life Katanga

Balance sheet

As at 31 December 2020

Note
Fixed assets
Tangible assets
8
Current assets
Debtors
9
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
10
Net current assets
Net assets
Funds
12
Restricted funds
Unrestricted funds
General funds
Total charity funds		 £
2,482
19,531
22,013
-		 2020
£
100
22,013
22,113
14,236
7,877
22,113		 2019
£
100
2,413
16,591
19,004
-
19,004
19,104
12,221
6,883
19,104

Approved by the trustees on 1 September 2021 and signed on their behalf by

Chris Collier

Chris Collier - Trustee

9

Hope for Life Katanga

Notes to the financial statements

For the year ended 31 December 2020

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Hope for Life Katanga meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, despite the challenges arising from the global Covid-19 pandemic. The trustees consider this to be appropriate having regard to the current level of unrestricted reserves and the ongoing support of regular donors.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

d) Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

e) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest received or receivable by the bank.

10

Hope for Life Katanga

Notes to the financial statements

For the year ended 31 December 2020

1. Accounting policies (continued)

f) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Computer equipment 3 years Furniture 4 years

i) Debtors

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

j) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

k) Creditors

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

l) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

11

Hope for Life Katanga

Notes to the financial statements

For the year ended 31 December 2020

1. Accounting policies (continued)

m) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no estimates or judgements that have a significant effect on the amounts recognised in the financial statements.

n) Foreign currency transactions

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end.

2. Prior period comparatives

Income from:
Donations
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income
Transfers between funds
Net movement in funds		 Restricted
£
27,179
-
27,179
-
22,546
22,546
4,633
188
4,821		 £
13,904
5
13,909
38
11,422
11,460
2,449
(188)
2,261
Unrestricted		 2019
Total
£
41,083
5
41,088
38
33,968
34,006
7,082
-
7,082

12

Hope for Life Katanga

Notes to the financial statements

For the year ended 31 December 2020

3. Income from donations

Income from donations
Planned monthly giving
One-off donations
Grants from Trusts and Foundations
Donations from Trendlewood Church
Gift aid
Total donations
Prior period comparative
Planned monthly giving
One-off donations
Grants from Trusts and Foundations
Donations from Trendlewood Church
Gift aid
Total donations		 Restricted
£
19,132
-
5,500
-
532
25,164
Restricted
£
17,179
-
10,000
-
-
27,179		 £
6,310
1,525
-
1,168
4,297
13,300
£
4,260
4,371
-
1,783
3,490
13,904
Unrestricted
Unrestricted		 2020
Total
£
25,442
1,525
5,500
1,168
4,829
38,464
2019
Total
£
21,439
4,371
10,000
1,783
3,490
41,083

4. Total expenditure

Direct costs in Uganda:
Salaries
Staff training and retreat
School fees
Other education costs (food and resources)
College scholarship costs
Medical equipment and supplies
Community support (including Covid food packages)
Core running costs (fuel, utilities, internet)
Other costs
Support and fundraising costs in the UK:
Fundraising costs
Website and software
Total expenditure		 Raising
funds
£
-
-
-
-
-
-
-
-
-
81
-
81		 Charitable
activities
£
12,883
539
5,128
3,136
3,216
534
6,890
1,714
1,078
-
259
35,377		 2020
Total
£
12,883
539
5,128
3,136
3,216
534
6,890
1,714
1,078
81
259
35,458

13

Hope for Life Katanga

Notes to the financial statements

For the year ended 31 December 2020

4. Total expenditure (continued) Prior period comparative

Total expenditure (continued)
Prior period comparative
Direct costs in Uganda:
Salaries
Staff training and retreat
School fees
Other education costs (food and resources)
College scholarship costs
Livelihoods training and materials
Medical equipment and supplies
Core running costs (fuel, utilities, internet)
Other costs
Support and fundraising costs in the UK:
Fundraising costs
UK bank charges and foreign exchange losses
Website and software
Total expenditure		 Raising
funds
£
-
-
-
-
-
-
-
-
-
38
-
-
38		 Charitable
activities
£
11,916
792
9,052
3,308
3,926
1,356
719
1,261
359
-
1,015
264
33,968		 2019
Total
£
11,916
792
9,052
3,308
3,926
1,356
719
1,261
359
38
1,015
264
34,006

14

Hope for Life Katanga

Notes to the financial statements

For the year ended 31 December 2020

5. Net movement in funds

This is stated after charging:

Depreciation
Trustees' remuneration
Trustees' reimbursed expenses		 2020
£
Nil
Nil
Nil		 2019
£
Nil
Nil
Nil

6. Staff costs and numbers

Staff costs were as follows:

Salaries and wages 2020
£
12,883		 2019
£
11,916

No employee earned more than £60,000 during the year.

The key management personnel of the charity are deemed to be the trustees. No trustees received remuneration or reimbursed expenses.

Average head count 2020
No.
8.00		 2019
No.
9.00

7. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

15

Hope for Life Katanga

Notes to the financial statements

For the year ended 31 December 2020

8. Tangible fixed assets

Cost
At 1 January 2020
Additions in year
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019
9.
Debtors
Gift aid recoverable
Staff salary advances
Other debtors
10. Creditors : amounts due within 1 year
Other creditors		 Freehold
land and
buildings
£
3,022
-
3,022
2,922
-
2,922
100
100		 Furniture
and
equipment
£
2,062
-
2,062
2,062
-
2,062
-
-
2020
£
1,902
48
532
2,482
2020
£
-		 Total
£
5,084
-
5,084
4,984
-
4,984
100
100
2019
£
1,127
831
455
2,413
2019
£
-

16

Hope for Life Katanga

Notes to the financial statements

For the year ended 31 December 2020

11. Analysis of net assets between funds

Analysis of net assets between funds
Tangible fixed assets
Current assets
Current liabilities
Net assets at 31 December 2020
Prior period comparative
Tangible fixed assets
Current assets
Current liabilities
Net assets at 31 December 2019		 £
-
14,236
-
14,236
£
-
12,221
-
12,221
Restricted
funds
Restricted
funds		 £
100
7,777
-
7,877
£
100
6,783
-
6,883
Unrestricted
funds
Unrestricted
funds		 Total
funds
£
100
22,013
-
22,113
Total
funds
£
100
19,004
-
19,104

17

Hope for Life Katanga

Notes to the financial statements

For the year ended 31 December 2020

12. Movements in funds

Restricted funds
Education: sponsor a child
Education: general
Education: college scholarship
Health and Covid relief
Livelihoods: programmes
Total restricted funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 At 1
January
2020
£
7,128
5,093
-
-
-
12,221
6,883
6,883
19,104		 Income
£
8,940
8,540
2,080
5,574
30
25,164
13,303
13,303
38,467		 £
(7,795)
(3,836)
(5,914)
(7,509)
(30)
(25,084)
(10,374)
(10,374)
(35,458)
Expenditure		 £
-
(3,834)
3,834
1,935
1,935
(1,935)
(1,935)
-
Transfers
between
funds		 £
8,273
5,963
-
-
-
At 31
December
2020
14,236
7,877
7,877
22,113

Purposes of restricted funds

Sponsor a child

This fund pays for school fees and related costs, e.g. uniforms, for children in formal schooling.

General education

This fund is to pay the salaries of the teachers employed in the Hope for Life Katanga catch up classes and the other costs of running the catch up classes.

College scholarship

This fund pays for tuition fees, salary costs and other costs of the college scholarship and vocational training programmes.

Health and Covid relief

A nurse is employed for 1 day per week to provide education and professional advice. The costs of the nurse and related expenditure are currently paid from donations given by Health Tree Uganda. In 2020 we also fundraised to provide community support and emergency food parcels in light of the Covid pandemic.

Livelihood programmes

These funds are to support the development of various livelihoods programmes with adults in Katanga, including running hairdressing, craft and cooking courses.

Transfers between funds

The transfer out of the general education fund to college scholarship helps to fund staff salary costs and tuition fees for girls entering vocational programmes. The transfer from general funds in to healthcare is to top up overspends on this fund.

18

Hope for Life Katanga

Notes to the financial statements

For the year ended 31 December 2020

12. Movements in funds (continued)

Prior period comparative

Restricted funds
Education: sponsor a child
Education: general
Education: college scholarship
Healthcare: nurse and equipment
Livelihoods: programmes
Total restricted funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 At 1
January
2019
£
7,400
-
-
-
-
7,400
4,622
4,622
12,022		 Income
£
8,780
13,540
3,577
1,082
200
27,179
13,909
13,909
41,088		 £
(9,052)
(6,942)
(5,082)
(1,270)
(200)
(22,546)
(11,460)
(11,460)
(34,006)
Expenditure		 £
-
(1,505)
1,505
188
-
188
(188)
(188)
-
Transfers
between
funds		 £
7,128
5,093
-
-
-
At 31
December
2019
12,221
6,883
6,883
19,104

13. Related party transactions

There were no related party transactions in the current or prior reporting period.

19