Charity Registration No. 1154872
Company Registration No. 08508569 (England and Wales)
SOLIDARITY PROJECTS LIMITED
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
SOLIDARITY PROJECTS LIMITED (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Sr K O'Flynn Rev J G Greene Mr A Henderson
Charity number 1154872 Company number 08508569 Registered office 2B Vantage Park Washingley Road Huntingdon Cambs PE29 6SR Independent examiner UHY Hacker Young 2B Vantage Park Washingley Road Huntingdon Cambs PE29 6SR
SOLIDARITY PROJECTS LIMITED (A COMPANY LIMITED BY GUARANTEE) CONTENTS
| Page | |
|---|---|
| Trustees report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 12 |
SOLIDARITY PROJECTS LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021
The trustees present their report and financial statements for the year ended 31 December 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)
Objectives and activities
The charity is established for the public benefit to advance education and preserve and protect good health in South Sudan by:
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supporting the creation of self-sufficient education, healthcare, agricultural and other infrastructure projects - the provision of training, instruction or pastoral care to those who are poor in order to develop their physical, mental, emotional and spiritual capacities
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providing or assisting in the provision or education and healthcare of any child or person in keeping with the precepts of the Christian faith and Christian ideals
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providing assistance for the training of teachers, parents, youth leaders or other persons engaged, or to be engaged, in the provision of education, leadership or instruction of individuals
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providing where needed, assistance for the furtherance or development of education and healthcare including youth leadership, religious and moral development especially the young and socially and economically disadvantaged
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providing any further assistance as the trustees may from time to time think fit for the provision of educational and healthcare facilities
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to cooperate with other charitable organisations whether local, national or international for any of the foregoing.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
Financial review
During the year the charity had incoming resources of £131,130 (2020: £176,183) and outgoing resources of £109,916 (2020: £64,554).
Investments assets gains amounted to £451,393 (2020: £195,760), which comprised of £20,080 in relation to net gains on disposals of investments assets (2020: £174,709 net losses on disposals) and £431,313 (2020: £370,469) that refers to a net increase in market value of investments assets.
Accumulated unrestricted funds carried forward amount to £4,467,792 (2020: £3,988,930) and accumulated restricted funds carried forward amount to £50,282 (2020: £56,537).
The trustees have no concerns about the company continuing to operate as a going concern and consider it will be able to meet its liabilities as they fall due.
The charity has an investment portfolio managed by Quilter Cheviot on their behalf. The intention is to hold the portfolio for at least five years with the income generated being available to meet the core objectives of the charity.
The trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks. The trustees have also paid attention to the ongoing consequences of the political instability in South Sudan and retain all funds in the UK until the time of need and then only for specific projects.
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SOLIDARITY PROJECTS LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
The charity’s main investments are held in order to help transition the management of activities to local South Sudanese management. Unrest in recent years has significantly delayed this process and trustees are considering what other interim uses could be made of these investments.
Structure, governance and management
The charity is registered as a charitable company limited by guarantee and was set up on 29 April 2013 and registered as a charity with the Charity Commission for England and Wales on 4 December 2013. Its company number is 08508569 and its charity number is 1154872.
The charity is constituted under a Memorandum of Association dated 24 April 2013 as amended by Special Resolutions of 5 November 2013 and 19 February 2015. The liability of the members is limited. Every member of the charity undertakes to contribute to the assets of the charity, if it is wound up whilst he/she is a member or within one year after he/she ceases to be a member, such amounts as may be required not exceeding one pound.
The charity adheres to the principles of solidarity and to the charitable purposes of the 'Solidarity with Southern Sudan Project', a collaborative international project undertaken by members of the USG (Union of Superiors General), UISG (International Union of Superiors General), and South Sudan Catholic Bishop Conference. The charity was established to facilitate the project's administration and in particular its ability to raise funds internationally, through grant applications and donations, to support the work being undertaken in South Sudan.
The trustees have considered the impact of Covid-19 on the charity and are aware that income and asset values may fall in the future. As the charity does not have any regular commitments and is prepared to take a long term view of investments, the trustees do not consider any immediate actions are needed but will monitor events and act accordingly.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Fr P A Smyth (Resigned 18 March 2021) Sr K O'Flynn Rev J G Greene Mr A Henderson
The management of the charity is the responsibility of the trustees who are elected and co-opted under the terms of the Memorandum of Association dated 24 April 2013 as amended by Special Resolutions of 5 November 2013 and 19 February 2015. The names of the trustees are set out on the attached schedule of legal and administrative information as well as above. The trustees are chosen on the basis of their willingness to serve, ability, governance, experience and support of the ethos, mission and philosophy of the charity.
None of the trustees has any beneficial interest in the charity. All of the trustees are members of the charity and guarantee to contribute £1 in the event of a winding up.
The trustees are ultimately responsible for the policies, activities and assets of the charity. The trustees meet on a regular basis to make decisions on behalf of the charity.
The trustees report was approved by the Board of Trustees.
Mr A Henderson
Trustee Dated: 24 May 2022
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SOLIDARITY PROJECTS LIMITED (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SOLIDARITY PROJECTS LIMITED
I report to the trustees on my examination of the financial statements of Solidarity Projects Limited (the charity) for the year ended 31 December 2021.
Responsibilities and basis of report
As the trustees of the charity (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 financial statements of the charity 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 financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
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 that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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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
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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 financial statements to be reached.
Scott Rouse FCA UHY Hacker Young
2B Vantage Park Washingley Road Huntingdon Cambs PE29 6SR
Dated: 30 May 2022
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SOLIDARITY PROJECTS LIMITED (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
| Unrestricted | Restricted | Total | Total | ||||
|---|---|---|---|---|---|---|---|
| funds | funds | ||||||
| 2021 | 2021 | 2021 | 2020 | ||||
| Notes | £ | £ | £ | £ | |||
| Income from: | |||||||
| Donations and legacies | 3 | 57,122 | 26,254 | 83,376 | 128,634 | ||
| Investments | 4 | 47,754 | - | 47,754 | 47,549 | ||
| Total income | 104,876 | 26,254 | 131,130 | 176,183 | |||
| Expenditure on: | |||||||
| Governance costs | 5 | 63,341 | 1,215 | 64,556 | 38,465 | ||
| Charitable activities | 6 | 14,066 | 31,294 | 45,360 | 26,089 | ||
| Total expenditure | 77,407 | 32,509 | 109,916 | 64,554 | |||
| Net gains/(losses) | on investments | 8 | 451,393 | - | 451,393 | 195,760 | |
| Net movement in funds | 478,862 | (6,255) | 472,607 | 307,389 | |||
| Fund balances | at 1 January 2021 | 3,988,930 | 56,537 | 4,045,467 | 3,738,078 | ||
| Fund balances at 31 December 2021 | 4,467,792 | 50,282 | 4,518,074 | 4,045,467 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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SOLIDARITY PROJECTS LIMITED (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET
AS AT 31 DECEMBER 2021
| 2021 | 2021 | 2020 | 2020 | ||
|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible assets | 10 | 23,190 | - | ||
| Investments | 11 | 4,036,853 | 3,595,815 | ||
| 4,060,043 | 3,595,815 | ||||
| Current assets | |||||
| Debtors | 12 | 1,944 | 34,024 | ||
| Cash at bank and in hand | 475,874 | 428,021 | |||
| 477,818 | 462,045 | ||||
| Creditors: amounts falling due within | |||||
| one year | 13 | (19,787) | (12,393) | ||
| Net current assets | 458,031 | 449,652 | |||
| Total assets less current liabilities | 4,518,074 | 4,045,467 | |||
| Income funds | |||||
| Restricted funds | 50,282 | 56,537 | |||
| Unrestricted funds | 4,467,792 | 3,988,930 | |||
| 4,518,074 | 4,045,467 |
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 18 May 2022
Mr A Henderson Trustee
Company Registration No. 08508569
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SOLIDARITY PROJECTS LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
1 Accounting policies
Charity information
Solidarity Projects Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 2B Vantage Park, Washingley Road, Huntingdon, Cambs, PE29 6SR.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The Trustees have considered the implications of the Covid-19 pandemic and its effect on the charity and consider that to continue to adopt the going concern basis of accounting in preparing the financial statements is appropriate.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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SOLIDARITY PROJECTS LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
1 Accounting policies
(Continued)
Turnover is measured at the fair value of the consideration received or receivable and represent amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Charitable activities are grants payable to charitable institutions and individuals.
Governance costs are costs incurred relating to the governance of the Charity and are not apportioned to charitable activities.
All expenditure is inclusive of irrecoverable VAT.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Motor vehicles 25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
1.7 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
- 1.8 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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SOLIDARITY PROJECTS LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
1 Accounting policies
(Continued)
1.10 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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SOLIDARITY PROJECTS LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
3 Donations and legacies
| Unrestricted | Restricted | Total | Total | |
|---|---|---|---|---|
| funds | funds | |||
| 2021 | 2021 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Donations and gifts | 57,000 | 26,254 | 83,254 | 128,634 |
| Other | 122 | - | 122 | - |
| 57,122 | 26,254 | 83,376 | 128,634 |
4 Investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2021 | 2020 | |
| £ | £ | |
| Income from listed investments | 47,754 | 47,549 |
- 5 Governance costs
| Unrestricted | Restricted | Total | Total | |
|---|---|---|---|---|
| funds | funds | |||
| 2021 | 2021 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Bank fees | 93 | 93 | 186 | 180 |
| Office costs | 1,122 | 1,122 | 2,244 | 1,776 |
| Travel | - | - | - | 386 |
| Legal and professional | 13,337 | - | 13,337 | 301 |
| Accountancy | 6,341 | - | 6,341 | 6,424 |
| Investment management fees charged directly to | ||||
| investment account | 27,865 | - | 27,865 | 24,839 |
| Sundry costs | 14,583 | - | 14,583 | 4,559 |
| 63,341 | 1,215 | 64,556 | 38,465 |
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SOLIDARITY PROJECTS LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
| 6 | Grants payable | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | ||||||||
| £ | £ | ||||||||
| Grants to institutions: | |||||||||
| Catholic Health Training Institute | 31,294 | 26,089 | |||||||
| Grants to individuals | 6,336 | - | |||||||
| 37,630 | 26,089 | ||||||||
| 7 | Employees | ||||||||
| The average monthly number of employees during the year was: | |||||||||
| 2021 | 2020 | ||||||||
| Number | Number | ||||||||
| Total | - | - | |||||||
| 8 | Net gains/(losses) on investments | ||||||||
| Unrestricted | Unrestricted | ||||||||
| funds | funds | ||||||||
| 2021 | 2020 | ||||||||
| £ | £ | ||||||||
| Revaluation of investments | 431,313 | 370,469 | |||||||
| Gain/(loss) on sale of investments | 20,080 | (174,709) | |||||||
| 451,393 | 195,760 |
9 Taxation
The charity is exempt from tax on profits and gains to the extent that these are applied to its charitable objectives. No tax charges have arisen in this period.
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SOLIDARITY PROJECTS LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
| 10 | Tangible fixed assets | ||||
|---|---|---|---|---|---|
| Motor vehicles | |||||
| £ | |||||
| Cost | |||||
| Additions | 30,920 | ||||
| At 31 December 2021 | 30,920 | ||||
| Depreciation and impairment | |||||
| Depreciation charged in the year | 7,730 | ||||
| At 31 December 2021 | 7,730 | ||||
| Carrying amount | |||||
| At 31 December 2021 | 23,190 | ||||
| 11 | Fixed asset investments | ||||
| Listed | |||||
| investments | |||||
| £ | |||||
| Cost or valuation | |||||
| At 1 January 2021 | 3,595,815 | ||||
| Additions | 373,001 | ||||
| Valuation changes | 451,393 | ||||
| Disposals | (383,356) | ||||
| At 31 December 2021 | 4,036,853 | ||||
| Carrying amount | |||||
| At 31 December 2021 | 4,036,853 | ||||
| At 31 December 2020 | 3,595,815 | ||||
| 12 | Debtors | ||||
| 2021 | 2020 | ||||
| Amounts falling due within one year: | £ | £ | |||
| Prepayments and accrued income | 1,944 | 34,024 | |||
| 13 | Creditors: amounts falling due within one year | ||||
| 2021 | 2020 | ||||
| £ | £ | ||||
| Accruals and deferred income | 19,787 | 12,393 |
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SOLIDARITY PROJECTS LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
| 14 | Analysis of net assets between funds | Analysis of net assets between funds | ||||
|---|---|---|---|---|---|---|
| Unrestricted | Restricted |
Total |
Unrestricted | Restricted |
Total |
|
| funds | funds | funds | funds | |||
| 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | |
| £ | £ | £ | £ | £ | £ | |
| Fund balances at 31 | ||||||
| December 2021 are | ||||||
| represented by: | ||||||
| Tangible assets 23,190 |
- | 23,190 | - | - | - | |
| Investments 4,036,853 |
- | 4,036,853 | 3,595,815 | - | 3,595,815 | |
| Current assets/ | ||||||
| (liabilities) 407,749 |
50,282 | 458,031 | 393,115 | 56,537 | 449,652 | |
| 4,467,792 | 50,282 | 4,518,074 | 3,988,930 | 56,537 | 4,045,467 |
15 Related party transactions
The trustees were reimbursed expenses of £nil during the year.
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