2022-03-31-accounts - Phan Foundation

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Registered charity number 1154658

Phan Foundation CIO

Trustees' Report and Financial Statements

For the year ended 31 March 2022

Phan Foundation CIO Report and Financial Statements Contents

	Page
Report of the trustees	1-6
Legal and administrative information	7
Independent examiner's report	8
Statement of financial activities	9
Balance sheet	10
Notes forming part of the financial statements	11-16

Phan Foundation CIO Trustees’ Report Year ended 31 March 2022

The Phan Foundation was founded by the four children of Padoh Mahn Sha, the General Secretary of the Karen National Union, and Nant Kyin Shwe, in their memory.

The Phan Foundation is a Charitable Incorporation Organisation, registered charity number 1154658. Our governing document is the constitution of the Phan Foundation.

Charitable objects

(1) TO PREVENT OR RELIEVE POVERTY IN BURMA,

(2) TO PREVENT OR RELIEVE POVERTY (INCLUDING THE FINANCIAL NEEDS) OF REFUGEES, ASYLUM SEEKERS, MIGRANT WORKERS AND THEIR DEPENDENTS FROM BURMA.

(3) TO ADVANCE THE EDUCATION OF PEOPLE OF ALL AGES FROM BURMA.

(4) TO ADVANCE THE EDUCATION OF THE PUBLIC IN THE SUBJECTS OF ETHNIC KAREN CULTURE, HISTORY AND TRADITIONS

(5) TO PROMOTE HUMAN RIGHTS (AS SET OUT IN THE UNIVERSAL DECLARATION OF HUMAN RIGHTS AND SUBSEQUENT UNITED NATIONS CONVENTIONS AND DECLARATIONS) AND TO ADVANCE THE EDUCATION OF THE PUBLIC IN THE SUBJECT OF HUMAN RIGHTS IN BURMA AND SUCH OTHER PARTS OF THE WORLD AS THE TRUSTEES SEE FIT.

Grant-making approach and policy

The founders of the Phan Foundation, being from Karen State Burma, growing up in a conflict zone and having been internally displaced and refugees, have a particular experience, knowledge and expertise in both the needs of the people, and the organisations which are providing effective assistance to them.

Phan Foundation aims to support civil society organisations, specialising in small high impact grants to organisations and areas which struggle to find funding from other donors.

We provide long term commitments to some projects so they do not have to worry about funding year to year and can instead focus on the work they are doing. We also aim to be responsive to events able to provide assistance at times of emergency.

At the same time as rigorously ensuring funds are spent as allocated, it is an important and integral principle of the Phan Foundation that we do not place unreasonable and unnecessary reporting burdens on recipients of our grants.

Our grants to partners

This reporting period covers most of the first year of the attempted military coup by the Burmese military, and the subsequent human rights and humanitarian crisis. It also saw a major wave of Covid across the country, which caused not only a health crisis but a food crisis.

Phan Foundation CIO Trustees’ Report Year ended 31 March 2022

The civil society organisations we support faced not only an unprecedented challenge in responding to these crises but were also working in a totally changed political environment where civil society activists faced arrest and torture, while their organisations were shut down by the military.

Staff and volunteers had to flee their homes and seek safety in neighbouring countries or areas of Burma not under the control of the military. They and their families faced challenges for their security and livelihoods at the same time as trying to assist others.

At this time of crisis, the philosophy of the Phan Foundation to work with local civil society and to do so in a timely, flexible way, came into its own. We were able to provide funding significantly faster than other donors, enabling aid to reach people and save lives, and through our networks ensure aid reached communities which would otherwise have received no support.

Our swift response to requests from partners meant aid quickly reached internally displaced people fleeing air strikes and artillery strikes, and that when civil disobedience movement activists fled to Karen State with nothing but their clothes on their backs, local communities were able to provide food, shelter, clothing and medicines.

Thanks to generous donors, Karen communities in exile, and churches, Phan Foundation was able to increase our annual grant giving by four times, to almost quarter of a million pounds. We are grateful to all our donors for enabling us to be able to provide this lifesaving and life-changing support in partnership with the following organisations.

Lives have been saved, activists escaped to safety, children had food, medicines and shelter.

Grant areas

Phan Foundation normally reports on grants detailing our partners and the work they do. Due to the changed security situation in Burma since the attempted coup began, it is no longer safe to publicly name most of the organisations we gave grants to. Therefore, for this report, we will detail different areas of work funded without naming the partners which carried out the work.

Internally Displaced People – Karen State

The first use of airstrikes in decades, combined with new long-range artillery targeting civilian areas, led to the numbers of IDPs increasing from the low thousands to hundreds of thousands within a matter of weeks. Local civil society organisations faced the challenge of reaching people in a conflict zone under the threat of airstrikes in hard-to-reach areas and with the government of Thailand refusing to officially allow cross-border aid. This also took place in the run up to rainy season, which would make the delivery of aid hard to impossible, depending on where IDPs were.

Where major donors dithered in bureaucracy while people went hungry or died from lack of basic medicines, Phan Foundation stepped in to make immediate grants through several trusted local partners, enabling those partners to reach people in need.

Support provided to IDPs included:

Rice and other food
Shelter
Clothing and bedding
Medicines
Cooking equipment and other utensils

Phan Foundation CIO Trustees’ Report Year ended 31 March 2022

Special nutrition and sanitary packs for pregnant women and mothers and young children

Internally Displaced People – Karenni State

Immediately after the attempted coup began, Karenni State was one of the centres of resistance, prompting a fierce response from the Burmese military. Airstrikes, artillery and ground attacks by the Burmese military forced half of Karenni State’s 400,000 strong population to flee their homes, creating a humanitarian crisis.

Phan Foundation provided support to IDPs through to local civil society organisations, responding to the priorities of those organisations on the ground.

Support provided included:

Rice and other foodstuffs
Medicines
Educational materials/books

Human Rights Defenders

Protests began across Burma a few days after the attempted coup began, and the military responded brutally, opening fire on peaceful protesters, arresting thousands, torturing and sexually assaulting and killing arrested activists. Tortured and mutilated bodies were dumped or returned to families. Pictures of activists with beaten, bruised and swollen faces appeared in military-controlled state media. Protecting human rights defenders was and remains an urgent priority.

Phan Foundation received requests for support in three priority areas:

Support for activists’ security and living costs such as safe houses and food to enable them to continue activities promoting human rights.

Phan Foundation provided funding support to keep Karen human rights activists safe and continue their work in Karen State, Yangon, and other parts of Burma.

Support for activists and their families to escape to neighbouring countries or areas of Burma not under military control.

Phan Foundation provided funding support to Karen human rights activists and their families to escape from several parts of Burma. Support included transportation costs, living expenses for the journey and for necessary documents.

Support for activists and their families once they reached safer places. This was by far the largest part of our support for human rights defenders. Activists from across Burma sought safety in KNU controlled areas and in neighbouring Thailand. Many activists from central Burma arrived in jungles in Karen State with almost nothing. Little or no money, no food, few clothes. Nothing to cook with. No tools.

Support funded included:

Shelter
Bedding
Food
Clothing
Cooking equipment

Phan Foundation CIO Trustees’ Report Year ended 31 March 2022

Solar panels for power
Communication equipment to continue human rights promotion activities
Equipment for clean water/sanitation

Human rights defenders and their families arriving in Thailand also faced many challenges. Support funded by Phan Foundation included:

Accommodation costs
Living expenses, food, internet etc.
Equipment for human rights activities
Transport

Media Training

Phan Foundation supported a Karen civil society organisation to conduct media training with young people to build their skills in collecting evidence on the human rights and humanitarian situation in Karen State and reporting on it.

Youth

Phan Foundation supported several youth groups in different part of the country to implement projects on the following:

Youth exchange between Karen and other ethnic youth
Human rights education
Educational materials

Covid 19 Pandemic

Shortly after the attempted coup began a new wave of COVID stuck Burma. The Burmese military took no genuine action to address the health crisis, and instead tried to weaponise Covid to try to crush opposition and gain legitimacy for its rule. Support funded by Phan Foundation included:

Emergency food aid to villages in the Irrawaddy Delta who faced starvation due to a food crisis created by the pandemic.
Purchase of oxygen for people severely impacted by COVID with breathing difficulties.
Education programmes to help people avoid catching COVID.
Protective equipment.

Education

Phan Foundation continued with long-standing commitments to provide regular grants for education in order that education bodies know what income they can expect and plan ahead accordingly. Support by Phan Foundation included:

Funding for teacher salaries
Funding for school infrastructure
School equipment, textbooks etc

Medical treatment

In addition to medical support to activists and IDPs provided through partners delivering general support, Phan Foundation also supported two civil society organisations specialising in medical services, one in Karen State and one in Karenni State. They provided medical care to IDPs and local populations.

Phan Foundation CIO Trustees’ Report Year ended 31 March 2022

Culture

Phan Foundation continued its support for a magazine primarily for young people in refugee camps in Thailand and in Karen State. The magazine promotes education as well as promoting Karen culture and language.

Phan Foundation also funded a Karen community organisation to purchase Karen language textbooks to promote Karen language and culture with the local community.

Scholarship

Phan Foundation continued with funding a scholarship for a law student to enable them to achieve a legal qualification to be able to assist her local community.

Our charitable objectives and the public benefit

These grants all further the charitable objectives of the Phan Foundation and are undertaken for the public benefit of these objectives.

The Trustees confirm that we have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

Financial review

During the year the Charity’s income totalled £267,545 (2021: £59,768) and expenditure was £242,405 (2021: £51,733). The charity’s funds stood at £34,701 at 31 March 2022, (2021 £9,561) including £630 (2021: £6,227) of restricted funds and £34,071 (2021: £3,334) of unrestricted funds.

Investment policy

The charity does not currently hold sufficient funds to warrant investment. However, the charity banks with The Co-op, which has a sound ethical banking policy.

Reserves policy

The charity holds a small cash balance and is yet to reach an operational level where it has been possible to consider establishing a financial reserve. The Trustees will continue to monitor the charity’s finances and will establish a reserves policy when funds allow.

Statement of Trustees’ responsibilities

Charity law requires the trustees to prepare financial statements for each financial year which show a true and fair view of the state of affairs of the charity and its financial activities for that period. In preparing those financial statements, the trustees are required to:

Select suitable accounting policies and then apply them consistently,
Observe the methods and principles in the Charities SORP,
Make judgments and estimates that are reasonable and prudent,
State whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements,

and

Phan Foundation CIO Trustees. Report Year ended 31 March 2022 Prepare the fin*Kial statemenls on the golng concern basls unle55 It Is Inappropriatè to presume that the charlty will continue in operath)nal ewstence. The trustees are responslble for keeping proper accountin8 records whith disclose wilh reasonable accuracy at any time the financial posrclon of the charY and to enable them to ensure that the fSnancial statements comply with the Ch•r6ties Act 2011. They are also responsible lor 5afe8uardin8 the assets of the charity and hence for taklng reasonaEk steps for the PrntIOn and detection of fraud and other Irregularities. Thls report was approved by the board oftrustees on .[ tsfril 2023 ar 518ned on its behalf. St•ph•n 8•t•s Trustee

Phan Foundation CIO Legal and Administrative Information

Charity name: Charity registration number:

Registered office and operational address:

Phan Foundation CIO

1154658

110 The Bon Marche Centre 241-251 Ferndale Road London SW9 8BJ

Trustees on public record Stephen Bates

Independent examiner

Frank McDowell FJM Accountancy Limited 23 Shackleton Court 2 Maritime Quay London E14 3QF

Bankers

The Co-operative Bank plc Head Office PO Box 101 1 Balloon Street Manchester M60 4EP

Phan Foundatlon CIO Indgpendent Examiners report Independent examinorf$ report to the Trustoes of Phan Foundatjon CIO I report to the charity trustees on my examination ofthe K)Unts of the CIO for the year ended 31 March 2022. Rosponslbllltles and basis of report As the charity trustees of th8 CIO you are responsible for the weparation of the accounts in accordance with the requirements of tho Charities A¢t 2011 {kne ACYI. I report in respect of my examination of the CIO'S accounts carried out under section 145 of the Act. In carrying out my examination I have followed all applble Directr)ns given by the Charity Commission under se¢t•on 14515llbl of th8 2011 Act. The charity's gross incnne eXded £250.Ot)O and l am quali to undertake the examinathjn by being a qualffied member ofThe Assc¢iation of Accounts'ng Tethnicians. Indfrpondent oxamln•rf• •tatom•nt I have completed my examination. I confinn that no rnaterial matters have come to my attentn In connection with the examinatson giving me uSe to believe that in any material respect 1. accounting records r8 not kept as required by section 130 of thè k( or 2. the accounts do not accord vnlh those reCos. I confirm that there are no other mattèrs to vthich your attentn should be drwwn to enable a prop8r understsnding of the accounts to be reached. Frank James McDth¥ell FMAAT FJM Accountancy Limited 23 Shackleton Court 2 Maritime Quay London E14 3QF Date.. 9 April 2023

Phan Foundation CIO Statement of Financial Activities for the year ended 31 March 2022

				2022			2021
		Restricted	Unrestricted	Total	Restricted	Unrestricted	Total
	Notes	£	£	£	£	£	£
Income from:
Grants and donations	2	98,343	169,202	267,545	49,090	10,678	59,768
Total income		98,343	169,202	267,545	49,090	10,678	59,768
Expenditure on:
Raising funds		-	735	735	-	394	394
Charitable activities	3,4	103,970	137,700	241,670	42,863	8,476	51,339
Total expenditure		103,970	138,435	242,405	42,863	8,870	51,733
Net income for the year	6	(5,627)	30,767	25,140	6,227	1,808	8,035
Transfers between funds		30	(30)	-	-	-	-
Net movement in funds		(5,597)	30,737	25,140	6,227	1,808	8,035
Reconciliation of funds:
Total funds brought forward		6,227	3,334	9,561	-	1,526	1,526
Total funds carried forward	11	630	34,071	34,701	6,227	3,334	9,561

The statement of financial activities includes all gains or losses for the year. All income and expenditure derives from continuing activities.

Phan Foundallon CIO Balance Sheet as at 31 Mar¢h 2022 Not•s 2021 Curnt ass•ts Cash al bank and in Imnd 35,081 28,054 Cr•dltor4: •rnounts f*lllny du• Within on• y•ar 18,493 N•t cuTh•nt 45#•ts n•t aswls 10 34.701 9.581 Th• lund8 of th• ch•rlty: 11 A•strf¢t•d Sncorn• lund# 830 8.227 Unr•Jfrlct•d funds 34,071 3,334 Total lunds 34 701 9.581 Th• ffln8nd•l •1otornuts 18 bjf th• on 3 WII 20n and 8èn•J OTh th86r boholf by.. Sl•ph•n Bat Trus 10

Phan Foundation CIO Notes to the Accounts for the year ended 31 March 2022

1 Accounting policies

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year.

Basis of preparation and assessment of going concern

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2019) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.

Funds structure and accounting

Restricted grants and donations are available for the charity's use only in accordance with the terms under which, and for the purposes which, the funds were donated to the charity.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

Income recognition

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Grants and donations are included in full in the statement of financial activities when receivable.

Donated services and facilities

In accordance with the Charities SORP (FRS 102), the general volunteer time of the charity is not recognised. The trustees’ annual report provides more information about the contribution of volunteers.

Expenditure recognition

Expenditure is recognised on an accrual basis as a liability is incurred. Where expenditure includes VAT which can only be partially recovered, the irrecoverable VAT is reported as part of the expenditure to which it relates.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity.

Costs of generating funds comprise the costs associated with attracting voluntary income and fundraising trading costs.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Phan Foundation CIO Notes to the Accounts for the year ended 31 March 2022

1 Accounting policies

Expenditure recognition (continued)

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the independent examination fees and costs linked to the strategic management of the charity.

All costs are allocated between the expenditure categories of the statement of financial activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis e.g. floor area or estimated usage, as set out in Notes 3 and 4.

2 Grants and donations receivable

Advance Myanmar The Barbara & Dennis Weeden Charitable Trust Kachin Relief Fund First Burmese Baptist Church of San Francisco Karen Community Association - London Karen Community Association - Louisville Karen Community Association - UK Karen Swedish Community Micromondo New Life Kawthoolei Anonymity requested by donors Other grants and donations	2022 2021 Restricted Unrestricted Total Total £ £ £ £ - 158,000 158,000 2,500 - - - 7,000 - - - 2,000 6,526 - 6,526 8,468 500 - 500 710 2,085 - 2,085 - 23,579 - 23,579 - 1,678 - 1,678 - 2,658 - 2,658 - 906 - 906 - 36,555 4,000 40,555 22,562 23,856 7,202 31,058 16,528 98,343 169,202 267,545 59,768

3 Analysis of expenditure on charitable activities

Grants paid (Note 4) Publicity Bank charges Governance costs - accountancy	Grant- making Fund- raising Governance Total 2022 Total 2021 £ £ £ £ £ 239,926 - - 239,926 50,472 238 - - 238 238 1,146 735 - 1,881 663 - - 360 360 360 241,310 735 360 242,405 51,733

Expenditure on charitable activities was £241,670 (2021: £51,339) of which £103,970 (2021: £8,476) was unrestricted and £137,700 (2021: £42,863) was restricted.

Phan Foundation CIO Notes to the Accounts for the year ended 31 March 2022

4 Grants paid Dooplaya Karen Community Development Group Emergency & Healthcare Centre Karen Education and Culture Department Karen Environmental and Social Action Network Karen Human Rights Group Karen Office for Relief and Development Karen Peace Support Network Karen Student Network Group Karen Women's Organisation Karen Youth Organisation Karenni Mobile Health Committee Anonymity of organisations protected 5 Net income for the year This is stated after charging: Independent examiner's fees	Restricted Unrestricted £ £ 5,247 10,229 4,988 - 31,596 2,664 465 - - 4,591 - - 17,346 67,300 3,000 - 31,196 - - 4,033 4,444 - 5,000 47,827	2022 Total £ 15,476 4,988 34,260 465 4,591 - 84,646 3,000 31,196 4,033 4,444 52,827 239,926 2022 £ 360	2021 Total £ - - 21,667 1,416 - 14,905 1,034 3,000 5,964 - - 2,486
	103,282 136,644		50,472
			2021 £ 360

6 Related party transactions and trustees’ expenses and remuneration

The trustees all give their time and expertise freely without any form of remuneration or other benefit in cash or kind. No trustees claimed any expenses in the year or the preceding year.

Trustees made donations to the charity during the year totalling £180 (2021: £290).

7 Taxation

As a registered charity, Phan Foundation is exempt from tax on income and gains falling within Part 11 of the Corporation Tax Act 2010 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

The charity is registered for Gift Aid with HM Revenue & Customs under reference number W56202.

8 Creditors: amounts falling due within one year Deferred income (Note 9) Accrued expenses	2022 2021 £ £ - 18,133 360 360 360 18,493

Phan Foundation CIO Notes to the Accounts for the year ended 31 March 2022

9 Deferred income

Grants received in advance for the year ended 31 March 2022

arch 2022 At 1st April £ - - - - 5,907 - - 320	Restricted funds £ 630	- 18,133 Unrestricted Total funds funds £ £ 34,071 34,701 34,071 34,701 3,334 9,561 3,334 9,561 Outgoing At 31st resources Transfers March £ £ £ (31,596) - 611 (3,000) - - (6,000) - - (17,470) - 19 (39,714) 348 - (5,000) - - (502) 2 - (688) (320) -	18,133
			Total funds £ 34,701
	630		34,701
	6,227		9,561
	6,227		9,561
	Incoming resources £ 32,207 3,000 6,000 17,489 33,459 5,000 500 688
6,227	98,343	(103,970) 30 630
3,334	169,202	(138,435) (30) 34,071
9,561	267,545	(242,405) - 34,701

Phan Foundation CIO Notes to the Accounts for the year ended 31 March 2022

11 Movement in funds (continued) Prior year Restricted funds: Karen Education and Culture Department Karen Student Network Group Karen Women's Organisation Karen Office for Relief and Development (IDP) Anonymity of organisation protected Overheads Total restricted funds Unrestricted funds Total funds Restricted funds:	At 1st Incoming Outgoing At 31st April resources resources Transfers March £ £ £ £ £ - 15,818 (15,818) - - - 3,000 (3,000) - - - 5,964 (5,964) - - - 20,890 (14,983) - 5,907 - 2,820 (2,500) - 320 - 598 (598) - -
	- 49,090 (42,863) - 6,227
	1,526 10,678 (8,870) - 3,334
	1,526 59,768 (51,733) - 9,561

Karen Education and Culture Department

Phan Foundation provided a grant of £31,596 for teacher subsidies, scholarships, school building construction and maintenance, books and meals for children.

Karen Peace Support Network

Phan Foundation provided a grant of £17,346 for the provision of food, shelter, clothing, cooking equipment and communication equipment for activists fleeing arrest and torture by the Burmese military, and for people displaced by attacks by the Burmese military.

Karen Student Network Group

Phan Foundation provided a grant of £3,000 for the publication of a magazine for youth in refugee camps and Karen State, Burma, which provides educational information, encourages young people to participate in community development, and protects and promotes Karen culture and language.

Karen Women's Organisation

Phan Foundation provided a grant of £31,196 for food, shelter, transport, nutrition and hygiene materials for internally displaced people in Karen State, Burma.

Dooplaya Karen Community Development Group

Phan Foundation provided a grant of £5,247 for the provision of food, shelter and communication equipment to assist internally displaced people in Dooplaya, Karen State.

Karenni Mobile Health Committee

Phan Foundation provided a grant of £4,444 for the provision of food and medicine to internally displaced people in Karenni State, Burma.

Anonymous Youth Group (for their security)

Phan Foundation provided a grant of £5,000 for communities economically impacted by the covid pandemic, to provide emergency food and equipment.

Phan Foundation CIO Notes to the Accounts for the year ended 31 March 2022

11 Movement in funds (continued)

Restricted funds (continued):

Anonymous community group (for their security)

Phan Foundation provided a grant of £4,988 to a healthcare and community center for medical materials and hospital equipment.

Karen Environmental and Social Action Network

Phan Foundation provided a grant of £465 for media training to document, report on and raise awareness of the human rights and humanitarian situation in Karen State, Burma.