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2023-03-31-accounts

Registered charity number 1154658

Phan Foundation CIO

Trustees' Report and Financial Statements

For the year ended 31 March 2023

Phan Foundation CIO Report and Financial Statements Contents

Page
Report of the trustees 1-5
Legal and administrative information 6
Independent examiner's report 7
Statement of financial activities 8
Balance sheet 9
Notes forming part of the financial statements 10-15

Phan Foundation CIO Trustees’ Report Year ended 31 March 2023

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 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

The civil society organisations we support are facing immense challenges with a dramatic increase in conflict, human rights violations, repression, and mass displacement since the 2021 military coup. During this reporting period the number of

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Phan Foundation CIO Trustees’ Report Year ended 31 March 2023

Internally displaced people increased from the low thousands to hundreds of thousands of people in Kawthoolei (Karen State) alone.

The Phan Foundation has sought to continue to provide stable long-term grants to our partners, to assist them to plan ahead with assured funding, while at the same time responding to the urgent humanitarian crisis. Our main grants have been to civil society organisations assisting internally displaced people, and for education, we continue to support projects for protection and promotion of Karen culture, access to medical care, and protecting human rights defenders.

We also continued with our high profile Padoh Mahn Sha Young Leader Award, recognising outstanding young Karen leaders who work in areas related to our charitable objectives.

We are grateful to the donors who enable us to carry out our life-saving and lifetransforming work.

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 many of the organisations we gave grants to.

Internally Displaced People – Karen State

Local civil society organisations are able to access hundreds of thousands of people in Kawthoolei, who major international agencies can’t. They have the skills and capacity but are held back by lack of funding. The Phan Foundation provides flexible funding to ensure local civil society can quickly and efficiently assist communities in need. With the support of Phan Foundation local communities can focus on saving lives, rather than unnecessary paperwork.

Support provided to IDPs included:

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, 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.

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Phan Foundation CIO Trustees’ Report Year ended 31 March 2023

Phan Foundation support human rights defenders by providing humanitarian assistance for people who have fled to Kawthoolei are now dependent on aid, and to Karen human rights activists in different parts of Burma, supporting safe houses, transport and communication and basic living expenses.

Youth

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

Health and sanitation

Phan Foundation supported education and training for communities across Karen State on sanitation and health for prevention of illness. We also supported a civil society organisation providing emergency healthcare.

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. We supported other organisations in military occupied parts of Burma helping to promote and preserve Karen culture.

Education and livelihoods

Phan Foundation provided support in a wide range of areas, including teacher salaries, IT and other school equipment, school buildings, school fees, dormitory accommodation, engineering training, and a scholarship.

Our partners include:

Karen Peace Support Network

The Karen Peace Support Network (KPSN) is a coalition of more than 20 ethnic Karen civil society organisations seeking to promote the voices of communities from conflict zones in the current ‘peace process’ in Burma. KPSN plays a vital coordinating role between members, assisting in the delivery of emergency humanitarian assistance in Kawthoolei and neighbouring areas, as well as producing advocacy reports and briefings, lobbying the international community and donors to do more to address the humanitarian and human rights crisis in Burma, and raising public awareness.

Karen Student Network Group

The Karen Student Network Group (KSNG) was founded by young Karen people in Burma and refugees in Thailand. It engages in advocacy regarding the situation of young Karen refugees, promotes access to education for Karen children and young people, and publishes education materials in the Karen language, teaching young people about Karen history, culture and their rights, as well as information on health issues.

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Phan Foundation CIO Trustees’ Report Year ended 31 March 2023

Karen Education and Culture Department

The Karen Education and Culture Department (KECD) is the education department of the Karen National Union (KNU), responsible for providing education services in KNU controlled and mixed controlled areas. As the KNU expands the territory it controls post 2021, the number of schools it is responsible for has grown from 1093 to 1233.

KECD provides an essential service to children and youth in areas not under Burmese military occupation, ensuring they can receive an education. Free from central government restrictions and censorship, it is also able to provide education in local Karen languages and teach about Karen history and culture.

Karen Women’s Organisation

The Karen Women’s Organisation (KWO) is an outstanding community organisation with more than 50,000 members. It provides a wide range of services to Karen communities in Burma and refugees in Thailand. These range from the provision of nurseries, women’s education and empowerment programmes, livelihoods, development and humanitarian aid, refugee rights, and human rights research and advocacy.

Karen Youth Organisation

The Karen Youth Organisation provides training, education and support to Karen youth as part of a programme to ensure that KNU administered areas have the community and political leaders needed to provides services to the population and political leaders who listen to and work for the local population.

Our Charitable Objectives

The grants made in this financial year all further the charitable objectives of the Phan Foundation and are undertaken for the public benefit of these objectives. We confirm the trustees have had regard to the Charity Commission’s guidance on public benefit.

Financial review

During the year the Charity’s income totalled £58,008 (2022: £267,545) and expenditure was £89,972 (2022: £242,405). The charity’s funds stood at £2,737 at 31 March 2023, (2022 £34,701) including £3,406 (2022: £630) of restricted funds and (£669) (2022: £34,071) 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.

4

Phan Foundatlon CIO Trustees, Report Year ended 31 March 2023 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 chanty and its financial activities for that period. In preparing those financial statements, th8 trustees are required to.. Select suitable accounting policies and then apply them consistently, Observe the methods and principles in the Charilies SORP, Make judgments and estimates that are reasonable and prudent, State whether applicable accounting standards and statements of recommended practi￿ have been followed, subject to any departures disclosed and explained in the financial statements, and Prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will continue in operational existence. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial posilion of the charity and to enable them to ensure that the financial statements comply wf(h the Charities Act 2011. They are also responsible for safeguarding th8 assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. This report Was approved by the board of trustees on 24 January 2024 and signed on its behalf. Stephen Bates 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

6

Phan Foundatlon CIO Independent Examinetrs Yeport Independent examlnevs report to the Trustees of Phan Foundatlon CIO I rept)rt to the charity truste85 on my examinatThi ￿ the &ccwnts dthe CIO f(Kthe year ernled 31 March 2023. R￿pOnsIbIlIt￿ts and b•¥ls of report As the charity trustees ol the CIO YDU are resp￿sible for the preparation of the accounts in accordance wtth the requirements of the Charrties Act 2011 (Ihe Act). I report in respect of my examination of the CIO'S accL)unts carr￿d out under wlion 145 of the Act. In cary'ng out my eXaMinat￿n I have folbwed all ￿l￿ble ('rection5 grlen by the Charity Commission under Section 14515}Ibl of the 2011 A¢t. Indopgndont examSn•rf8 Stat8m•nt I have complel8d my examination. I confimi that no material matters have CJJnO to my attention In connéction wlh the examination giving me cause to bdreve that in any material respKt'. 1. accounting re￿rdS VBr• not as required by sectKX) 130 d the ACL. or 2, th• accounts do not accord with thos6 recordB. I cC￿TirM that there 8r6 rKI crth&r matter810 ￿th1¢h your attwrtion should bo dr•vn to enablg 8 proper undorslandlng of the accounts to bo rexhed. Frank James McD(h¥ell FMJAT FJM Accountsncy Limited 23 Shaeklelon Court 2 Marth'me Quay London E14 3QF

Phan Foundation CIO Statement of Financial Activities for the year ended 31 March 2023

2023
Restricted Unrestricted
Total
Notes
£
£
£
Income from:
Grants and donations
2
48,529
9,479
58,008
Total income
48,529
9,479
58,008
Expenditure on:
Raising funds
-
436
436
Charitable activities
3,4
45,753
43,783
89,536
Total expenditure
45,753
44,219
89,972
Net income for the year
6
2,776
(34,740)
(31,964)
Transfers between funds
-
-
-
Net movement in funds
2,776
(34,740)
(31,964)
Reconciliation of funds:
Total funds brought forward
630
34,071
34,701
Total funds carried forward
11
3,406
(669)
2,737		 2022
Restricted Unrestricted
Total
£
£
£
98,343
169,202
267,545
98,343
169,202
267,545
-
735
735
103,970
137,700
241,670
103,970
138,435
242,405
(5,627)
30,767
25,140
30
(30)
-
(5,597)
30,737
25,140
6,227
3,334
9,561
630
34,071
34,701

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

8

Phan Foundatlon CIO Balance Sheet as at 31 March 2023 Notes 2023 2022 Fixed assots Tangible assets 1,070 Current assels Cash at bank and in harnj 2.387 35,061 Cr•ditors: amounts falllng du8 Within one year 720 360 Net current assets 1,667 34,701 Nèt current assets and ngt a55ets 10 2,737 34,701 The funds of the charity- 11 Reslrl¢tsd income funds 630 UnrestTiCted funds (669) 34,071 Total funds 2,737 34.701 The financial ststements were approved by the trust88s on 24 January 2024 and signed on their behalf by.. stophen Bates Trustee

Phan Foundation CIO Notes to the Accounts for the year ended 31 March 2023

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.

10

Phan Foundation CIO Notes to the Accounts for the year ended 31 March 2023

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
Billericay Baptist Church
First Burmese Baptist Church of San Francisco
Karen Community Association - London
Karen Community of Louisville
Karen Community Association - UK
Karen Swedish Community
Micromondo
New Life Kawthoolei
Rockwell Automation
Unitarian Universalist Service Committee
Anonymity requested by donors
Other grants and donations		 2023
2022
Restricted Unrestricted
Total
Total
£
£
£
£
-
-
-
158,000
-
500
500
-
11,300
-
11,300
6,526
-
-
-
500
-
-
-
2,085
7,508
-
7,508
23,579
-
-
-
1,678
1,363
-
1,363
2,658
-
-
-
906
3,974
-
3,974
-
17,045
-
17,045
-
4,116
2,000
6,116
40,555
3,223
6,979
10,202
31,058
48,529
9,479
58,008
267,545

3 Analysis of expenditure on charitable activities

Grants paid (Note 4)
Publicity
Travel
IT costs
Bank charges
Governance costs - accountancy
Depreciation		 Grant-
making
Fund-
raising
Governance Total 2023
Total 2022
£
£
£
£
£
88,029
-
-
88,029
239,926
-
237
-
237
238
290
-
-
290
-
144
-
144
-
499
199
-
698
1,881
-
-
360
360
360
214
-
-
214
-
89,176
436
360
89,972
242,405

Expenditure on charitable activities was £89,536 (2022: £241,670) of which £43,783 (2022: £103,970) was unrestricted and £45,753 (2022: £137,700) was restricted.

11

Phan Foundation CIO Notes to the Accounts for the year ended 31 March 2023

4
Grants paid
Dawei and Myiek Mission
Dooplaya Karen Community Development Group
Emergency & Healthcare Centre
Karen Education and Culture Department
Karen Environmental and Social Action Network
Karen Human Rights Group
Karen Peace Support Network
Karen Student Network Group
Karen Women's Organisation
Karen Youth Organisation
Karenni Mobile Health Committee
Safe Water for Every Children – Myanmar
Thoo Mweh Khee Learning Centre
Anonymity of organisations protected
5
Net income for the year
This is stated after charging:
Independent examiner's fees		 Restricted Unrestricted
£
£
995
-
-
-
-
-
4,253
31,492
-
-
-
-
18,351
1,507
-
3,013
-
1,113
-
-
-
-
-
3,446
3,950
-
17,941
1,968		 2023
Total
£
995
-
-
35,745
-
-
19,858
3,013
1,113
-
-
3,446
3,950
19,909
88,029
2023
£
360		 2022
Total
£
-
15,476
4,988
34,260
465
4,591
84,646
3,000
31,196
4,033
4,444
-
-
52,827
45,490
42,539		 239,926
2022
£
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 (2022: £180).

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.

12

Phan Foundation CIO Notes to the Accounts for the year ended 31 March 2023

8 Tangible fixed assets

Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 IT
equipment
£
-
1,284
1,284
-
214
214
1,070
-

There were no capital commitments at 31 March 2023 (2022: Nil)

Accrued expenses 2023
2022
£
£
720
360
720
360

10 Analysis of net assets between funds

Current year
Tangible fixed assets
Net current assets
Prior year
Net current assets		 Restricted
Designated Unrestricted
funds
funds
funds
£
£
£
-
1,070
-
3,406
-
(1,739)
3,406
1,070
(1,739)
630
-
34,071
630
-
34,071		 Total
funds
£
1,070
1,667
2,737
34,701
34,701

13

Phan Foundation CIO Notes to the Accounts for the year ended 31 March 2023

11 Movement in funds
Current year
Restricted funds:
Karen Education and Culture Department
Karen Women's Organisation
Internally displaced people
Anonymity of organisation protected
Thoo Mweh Khee Learning Centre
Total restricted funds
Unrestricted funds:
Designated fixed asset fund
General funds
Total funds
Prior year
Restricted funds:
Karen Education and Culture Department
Karen Peace Support Network
Karen Student Network Group
Karen Women's Organisation
Internally displaced people
COVID relief
Emergency health
Anonymity of organisation protected
Total restricted funds
Unrestricted funds
Total funds
Restricted funds:		 At 1st
Incoming
Outgoing
At 31st
April
resources
resources Transfers
March
£
£
£
£
£
611
6,729
(5,221)
-
2,119
19
-
-
(19)
-
-
20,781
(19,513)
19
1,287
-
17,045
(17,045)
-
-
-
3,974
(3,974)
-
-
630
48,529
(45,753)
-
3,406
-
-
-
1,070
1,070
34,071
9,479
(44,219)
(1,070)
(1,739)
34,071
9,479
(44,219)
-
(669)
34,701
58,008
(89,972)
-
2,737
-
32,207
(31,596)
-
611
-
3,000
(3,000)
-
-
-
6,000
(6,000)
-
-
-
17,489
(17,470)
-
19
5,907
33,459
(39,714)
348
-
-
5,000
(5,000)
-
-
-
500
(502)
2
-
320
688
(688)
(320)
-
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

Karen Education and Culture Department

Phan Foundation provided £4,253 to the Karen Education and Culture Department for teacher salaries and expenses.

Dawei and Myiek Mission

Phan Foundation provided £995 to the Dawei and Myiek Mission for emergency assistance to Internally Displaced People.

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Phan Foundation CIO Notes to the Accounts for the year ended 31 March 2023

11 Movement in funds (continued)

Restricted funds (continued):

Karen Peace Support Network

Phan Foundation provided £18,351 to the Karen Peace Support Network for emergency assistance to Internally Displaced People.

Anonymous (for their security)

Phan Foundation provided £994 for an organisation we cannot name for security reasons, for emergency assistance to Internally Displaced People

Thoo Mweh Khee Learning Centre

Phan Foundation provided £3,950 to the Thoo Mweh Khee Learning Centre for machines, equipment, and tools for the engineering programme.

Anonymous (for their security)

Phan Foundation provided £16,947 to an organisation we cannot name for security reasons for educational, cultural, human rights promotion and youth activities.

15