2021-07-31-accounts

A company limited by guarantee Number 08605568 Charit No. 1156506 y

Report and Financial Statements

For the Year Ended

31 July 2021

31 July 2021

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A company limited by guarantee Number 08605568 Charit No. 1156506 y

Directors’/Trustees’ Report and Financial Statements for the Year Ended 31 July 2021.

Contents Reference and Administrative Information Report of the directors and trustees Statement of Financial Activities Balance Sheet Notes forming part of the financial statements	Page 3 4-7 8-9 10 11-12

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A company limited by guarantee Number 08605568 Charit No. 1156506 y

Report of the Directors and Trustees For the year ended 31 July 2021.

The directors and trustees present their report and financial statements for the year ended 31 July 2021.

Reference and Administrative Information

Charity Name: LBC Lifeline Resource Limited Charity registration number: 1156506 Company registration number: 8605568 Registered Office address: 16 Livingstone Place Carver Street, Manchester M16 9BZ Operational address: 16 Livingstone Place Carver Street, Manchester M16 9BZ

Directors and Trustees

The directors and trustees serving during the year were:

Dr Robert Nchoga Oenga – Chair Ms. Gladys Nyaboke Nyabicha – Resigned during the year Mr Dennis Chisunka – Director Miss Sandra Brown Kyokunda – Appointed during the year

Bankers

The charity’s bankers are;

Santander Bank 10 The Mall Eccles Manchester M30 0EA Account Name: LBC Lifeline Resource Ltd Sort code: 09-01-28 Account number: 50328852

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A company limited by guarantee Number 08605568 Charit No. 1156506 y

Structure and Governance

The charity is registered as a limited Company under guarantee. The governing document is the Memorandum and Articles of association reflect charitable purposes and approved by companies House on 26/03/2014. The initial subscribers to the memorandum and Articles of association are the company directors.

The application for registration as a charity was approved by the Charity Commission and the charity was registered on 02/04/2014. The charity is run by a team of three trustees.

The directors and trustees of the charity are responsible for the management of the charity’s affairs and meet regularly to review our objectives and plan activities to ensure they continually focus on the provision of public benefit.

Aims, objectives and activities

Purposes and Aims

The charity’s purposes as set out in the objects contained in the company’s memorandum of association are to:

• i. The prevention and relief of poverty in the Northwest England and East Africa (Kenya, Uganda, Tanzania, Burundi, Somalia, Rwanda and South Sudan) by providing or assisting in the provision of opportunities relating to the relief of poverty, unemployment, and the development of skills associated with improving employment prospects.

• ii. To develop the capacity and skills of the members of the socially and economically disadvantaged communities in North West England and East Africa (as defined above) in such a way that they are better able to identify, and help meet, their needs and to participate more fully in society.

Objectives and Main Activities

We regularly refer to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing objectives and in planning our activities to ensure they are focused on providing benefit to the public. The following were our main objectives and activities to meet our charitable purposes during this first year of operation;

i. Advancement of learning, education and skills

• a) We will continue to seek opportunities to offer courses in our premises ranging from 2 to 3 days focusing on developing transferable skills relevant to employment. The main sessions will cover;

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A company limited by guarantee Number 08605568 Charit No. 1156506 y

• improving skills for employment and job search

• maintaining and improving health and wellbeing

• inspiring enterprise spirit and developing skills for business

• using computers for preparing basic documents for self and business

• Using the internet for online information search and communication including receiving and sending emails and accessing key websites using search engines.

• Planning, promotion and running a business activity successfully for individuals and groups

Future:

Our future activities will also focus on skills development, active job search, placements and enterprise development for those learners who complete the training. We will also provide support for those starting small businesses to help them run their businesses successfully and profitably.

ii. Relief of poverty

The efforts have focused on promoting understanding of the importance of “working together” to address common social and economic issues facing communities. Our activities were aimed at creating awareness of the needs and opportunities available locally and the resources and capabilities resident in the individuals and communities to initiate positive actions to improve incomes and welfare.

Plans:

The charity continues to seek and work with funding partners to sustain our charitable activities including;

• Continuing training on business skills to start small businesses as a viable alternative to employment.

• Developing opportunities for export and import. The charity promotes a project supporting small rural farmers in Kenya to market their tea in the UK and small businesses in the UK to find a product for trade as tea traders.

• Continuing with development and improvement of skills for employment to enable job seekers to progress to work.

iii. Promotion of opportunities for job search, gainful self-employment, enterprise development, work-based learning, social networking, mentoring and other community-based economic development activities.

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A company limited by guarantee Number 08605568 Charit No. 1156506 y

This objective is closely linked to the first objective on promoting learning and Education. Our activities during this year have focused on developing the tea project jointly with our funding partners. The project will be expanded to include;

• importation and packaging of wholesale teas from Kenya and supporting a network of organic herbal tea growers and small tea packaging businesses in Kenya.

• linking the skills training with the enterprise development activities so that individuals can gain skills and access opportunities for gainful employment or selfemployment

• Working with community groups and other charities to provide training and support for enterprise activities.

Financial Overview

The principal funding sources for our activities during the year were designated grants from the European Union Social Fund (ESF) administered through the Workers Educational Association (WEA). The charity is grateful to the ESF for a grant funding £20,000 for skills training and the National Lottery Community Fund for designated grant of £9,992 for community support activities due to the impacts of COVID-19.

The charity is also grateful to the Greater Manchester Council for Voluntary Organisations (GMCVO) Social Investment Fund for a support grant of £2500 towards the Kenya tea project which was financed in 2018 through GMCVO grants and loan.

Our services

Our charitable purpose is fighting poverty, unemployment and lack of skills and our charitable activities continue to be the provision of skills training for employment and business. We aim to improve skills, incomes and job prospects of people across borders and improving access to markets and business skills of individuals and small businesses.

Under the Tea project, we import packaged and wholesale teas from small scale rural farmers in Kenya and market them at fair prices in the UK and EU using combined marketing strategies. The project also promotes small businesses and contributes to securing employment and incomes.

Our services have also extended to supporting people who have been impacted by the COVID19 pandemic by sharing information and guidance to improve and sustain practices and lifestyles that promote long-term safety, health and wellbeing of people and communities in Greater Manchester.

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A company limited by guarantee Number 08605568 Charit No. 1156506 y

Directors and trustees

In conformity with the requirements of the Charity Commission for charities, the directors and trustees give their time voluntarily and received no benefits from the charity.

The directors of the company for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report, are set out on page 3.

In preparing the financial statements for the year, the directors and trustees have;

• followed the best practices and applied appropriate accounting policies consistently and,

• • have maintained proper accounting records

• made judgements and estimates that are reasonable and prudent

• safeguarded the assets of the charitable company and taken reasonable steps for the prevention and detection of fraud and other irregularities.

• complied with the Companies Act 1985 and 2006 with regard to small companies.

• complied with the Charities Act; Accounting and Reporting by Charities – Statement of Recommended Practice (SORP 2005).

Director: Dr Robert N. Oenga/Chair Signed: __ Date: _____

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A company limited by guarantee Number 08605568 Charity No. 1156506

LBC Lifeline Resource Limited

A company limited by guarantee Number 08605568 Charity No. 1156506

Annual Accounts for the Period: 01/08/2020 To 31/07/2021 Notes Unrestricted Restricted Fund Fund £ £ Incoming Resources/Income Designated Grants 2 - 26,044 General Grants & Donations 3 6,106 - Training Fees 5,517 - Tea Project Sales - 12,147 11,623 38,191 Total Expended/Expenditure Wages, salaries, Pension, NI 3,605 12,600 Rent, Rates and Insurance 1,023 1,500 Training facilitation 1,060 7,280 Travel & Transport 970 1,430 Telephone & Postage 390 385 Website maintenance 260 210 Marketing and Promotion 366 489 Bank charges and Interest 83 - Mentoring and support 59 350 Printing and Stationery 210 399 Office running expenses 263 402 Tea Project Expenditure - 5,784 Tea Purchases (Less c/stocks) - 8,522 8,289 39,351	Total this Year 31/07/2021 £ 26,044 6,106 5,517 12,147 49,814 16,205 2,523 8,340 2,400 775 470 855 83 409 609 665 5,784 8,522 47,640	CC39a Total last Year 31/07/2020 £ 12,500 2,943 3,058 12,272 30,773 9,549 1,465 2,080 534 358 600 581 62 120 327 338 3,567 9,363 28,944

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A company limited by guarantee Number 08605568 Charity No. 1156506

Net incoming resources Total Funds brought Forward Total Funds c/f 31/07/2021	3,334 - (1,160) (3,833) 1,085 (499) (75)	2,174 2,748 (574)		1,829 4,577 (2,748)

The notes on page 11-13 are part of these financial statements.

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A company limited by guarantee Number 08605568 Charity No. 1156506

Balance Sheet as at 31/07/2021
		Notes	Total this	Total last
			Year	Year
			31/07/2021	31/07/2020
			£	£
Fixed Assets
Tangible Assets	3		287	287
Current Assets
Cash at Bank			8,498	1,553
Debtors	4		3,346	962
Stocks	5		4,350	5,545
			16,194	8,060
Creditors
Amounts falling due in one year	6		580	3,580
Net Current Assets			15,614	4,480
Total Assets			15,901	4,767
Long-term Liabilities
Amounts falling due more than 1 year	7		16,475	7,515
Net Assets			(574)	(2,748)
Financed by funds of the Charity;
Unrestricted Funds			(499)	(3,833)
Restricted/Designated Funds			(75)	(1,085)
Balance carried forward			(574)	(2,748)

The Directors and Trustees further confirm that;

a) For the year ended 31 July 2021 the company was entitled to exemption from audit under section 477 (2) of the Companies Act 2006.

b) The members have not required the company to obtain an audit in accordance with section

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A company limited by guarantee Number 08605568 Charity No. 1156506

476 of the Companies Act 2006.

• c) The Directors acknowledge their responsibilities for;

• i. Ensuring the company keeps accounting records which comply with section 386; and

ii. Preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its income and Expenditure for the financial year, in accordance with the requirements of section 393, and which

otherwise comply with the requirement of the Companies Act relating to accounts, so far as applicable to the company.

Signed by:

Robert Oenga ____ Date ________

Dennis Chisunka ____ Date ________

The notes on page 11-13 are part of these financial statements.

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A company limited by guarantee Number 08605568 Charity No. 1156506

Section C: Notes to the Accounts

For the year ended 31 July 2021

Note 1: Basis of preparation

1.1 Basis of accounting

These accounts have been prepared on the basis of Historical Cost in accordance with;

• i) The Accounting and Reporting by Charities – Statement of Recommended Practice (SORP 2005)

• ii) The Charities Act

Note 2: Accounting Policies

Recognition of incoming Resources

These are included in the Statement of Financial Activities (SoFA) when;

• i. The charity becomes entitled to the resources;

• ii. The trustees are virtually certain they will receive he resources; and

• iii. The monetary value can be measured with sufficient reliability.

Incoming Resources with related expenditure

When incoming resources have related expenditure (as with fundraising or contract income) the incoming resources and related expenditure are reported gross in the SoFA.

Grants and donations

Grants and donations are only included when the charity has unconditional entitlement to the resources.

Volunteer help

The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report.

Liability Recognition

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

Tea Stocks

Closing stocks of tea for the tea project are valued at cost.

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A company limited by guarantee Number 08605568 Charity No. 1156506

Note 3: Fixed Assets

Tangible fixed assets for use by the charity

These are capitalised if they can be used for more than one year, and cost at least £200. They are valued at cost or a reasonable value on receipt.

Depreciation

The policy of the charity is not to depreciate its fixed assets.

	The policy of the charity is not to depreciate its	The policy of the charity is not to depreciate its	The policy of the charity is not to depreciate its	The policy of the charity is not to depreciate its	fixed assets.
	Note 3 Tangible fixed assets
	3.1 Cost or valuation
		Freehold land & buildings	Other land & buildings	Plant, machinery and motor vehicles	Fixtures, fittings and equipment	Payments on account and assets under construction	Total 31/7/21	Total 31/7/20
		£	£	£	£	£	£	£
	Balance brought forward	-	-	-	287	-	287	287
	Additions	-	-	-	-	-	-	-
	Balance carried forward	-	-	-	287	-	287	287
	Note 4: Debtors Trade debtors – tea project ESF grant instalment due					31/07/2021 31/07/2020 £ £ 427 750 2,919 - 3,346 750

Note 5: The Tea Project Activity - Stocks

The charity supports and promotes projects that improve incomes and alleviate poverty of individuals, groups and organisations in the UK and abroad. The tea project supports small-scale rural farmers in Kenya to find a market for their tea and supplies a viable product to small businesses in the UK trading as tea sellers as well as proving consumers in the UK with an opportunity to enjoy exotic teas from Kenya. Closing stocks are valued at cost.

Total Total this last

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A company limited by guarantee Number 08605568 Charity No. 1156506

Tea Project Trading Account for the Year Ended 31 July 2021 Turnover Less; Cost of sales Opening Stock Purchases Shipping and freight Closing stock Gross profit Less: Expenditure Wages, salaries, pension, NI Packaging, storage and postage Travel and transport Website development and hosting Marketing and promotions Bank charges and interest Stock loss/expiry due to COVID-19 lockdown Office running expenses Net profit/(loss) for the year	Notes	Year 31/07/2021 £ 12,147 5,545 5,916 2,607 14,068 4,350 9,718 2,429 1,780 909 493 361 980 859 620 202 5,784 (3,355)	Year 31/07/2020 £ 12,272 5,934 7,340 2,223 15,497 5,545 9,952 2,320 1,662 497 343 199 97 628 - 141 3,567 (1,247)

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A company limited by guarantee Number 08605568 Charity No. 1156506

Note 6: Amounts falling due in 1 year

	31/07/2021	31/07/2020
	£	£
Trade creditors	580	3,580

Note 7: Long-term Liabilities

	31/07/2021	31/07/2020
	£	£
GMCVO Social Funding 3-years at 12.5% loan from 21/08/2018	6,075	7,873
Santander Bank Government Bounce Back loan from August 2020	10,400	-
	16,475	7,873

Note 8: Charity funds

The movement of the designated and unrestricted funds are as stated in the SoFA on page 7-8 of these accounts.

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