EMPATHY INTERNATIONAL
EMPATHY INTERNATIONAL Contents Reference and Adininistrative Delails Trusl¢es' Report 2to6 Iiidependent Examiner's Report Stateinent of fii)ai)cial Activities Balance Slieet Notes to tlie Fiiiancial Staleineii15 Ioto 15
Empathy International 'Broken hearts helping break poverty" Helping the rural poor through Education, Income generation and Aid Empathy International Trustees Report 2023 & Unauditèd Account5 y&ar ended 31 Decembor 2023 Charlty name and number Empathy International, Charity Registration number 1156970 Contact person IName and position) Mr Andrew Hepburn (Project fleld manager) Mrs Naomi Hepburn IPhD Agriculture) Mr Thomas Frederick Paul Doble IEngineer manager) Mrs Pamela Langsdon IRe¢ail manager) projecls@empathyinternalional.org.uk www.empathyinternalional.org.uk @empalhy.poor UK.. +441017484734274 Trustees EmaS1 address webslte Insta8ram Telephone & WhatsApp number Project aim Sustainable technical help and compasslon for the rural poor Address Rosilian, Tolgus Mount, Redruth, Cornwall, TR15 3TA Accountlng perlod lit January - 311t December 2023 Introduction We are so passionate to reach, resource and release the poor, disadvantaged and marginalised from all forms of poverty and in order to help pursue this goal Empathy International was granted UK registered charity status on 8th May 2014. Many rural poor in developing countries are totally dependent on basic agriculture/aquaculture and natural resources for suNival. In the remoter parts of the developing world, rice provides approx 80% of calorie intake. While rice is a source of energy, it doesn't contain all of the required nutrients and consequently, malnutrition is rife. Over reliance on rice has left many children undernourished, in some places 31% of children under 5 years are underweight and 48% of all children experience stunted growth. Malnutrition affects both the physical and cognitive development of children IRural Poverty Portal website} so helping improve sustainable farming methods is so important. "Empathy International is doing wonderful work to provide essential employment skills to poor families all across Northern Lao5, UK Amba55ador to Lao PDR John Pearson (2023)
Sustainabl Overcomin Malnutrition and Povert Through promoting sustainable income generating activities, education and tackling food Security, the effect5 of both extreme poverty and malnutrition can be impacted for the better. The challenge is that the poor not only lack money to start a small business, but they also lack access to relevant training, education, on-going technical support and ultimately hope for a better future. The passion of Empathy International is to see the most vulnerable and disadvantaged being reached, resourced and released from this poverty trap, through suitable grass-root income generating initiatives and education in rural communities where individuals & families are currently trained & helped with on-going technical advice and equipment.. Mekong Vocational Center proves future changing skills, trades and equipment to rural families and has an educational licence from Lao government. Bamboo school projects provides school uniforms, teaching materia l & school fees to rural school children; The production and provision of high quality fish & frogs from our fish hatcheries to rural poor families., The production and provision of high quality mushroom spores & mushroom equipment to villagers., The hands-on technical support helpin9 rural families with improved fish, pig & mushroom farming,. 'Dignity" Rural Women's skills projects which trains young rural women in sewing, chicken egg production, hairdressing & handcrafts. Each women is gifted their own sewing machine to help start their businesses,. Aquatic, animal & fungi disease management & manuals,. Piggy Bank Project farm improves the breeding stock of local village pigs so proving piglets to the poor.. Providing low cost solutions for feeds, storage, fertilisers & farming equipment; Along vvith practical life skills training, we also endeavour to provide relevant and practical on- going technical support and backup so that poor households can generate a sustainable income and provide food security This not only increases income and food security but also noticeably increases self-confidence and hope.
Lookin back on 2023 Improved the 'Piggy Bank Project, breeding program which promotes modern pig farming methods to rural villages and while provides improved breeding stock to increase yield. Improved Aquatic Program for our 2 hatcheries providin9 Increased survival rateslyields carp, tilapia & frogs. Expanded our rural mushroom growing program to new regions in Northern Laos farming with simple, cheap and appropriate methods for landless poor which provides a daily crop to sell. Continued with the Improved Mushroom Program which tests new and low cost growing methods for farmers, in particular testing new sterilising methods. Trained new staff in the production of quality of mushroom sporeslseedl for rural families. Training of local Tra iners in income generation techniques and disease management Expanded the LINK training program for motorbike mechanics for men and women. Supporting youth internship in rural fish farming, mushroom farming. Providing a small Compassion fund to help the extreme poor with warm clothing, food and medical costs. 23 international volunteers, graciously gave their time to help the work of Empathy International., Promoting the importance of sustainable development for the rural poor through social media on Facebook and In5tagram & updated the new website www,ern ath international,or Lookin forward to 2024 Starting new training courses in Introduction to Electrical and Solar. Improving the Hair salon training facilities to allow more rural women to be trained. Welcoming UK volunteering team with essential building skills te upgrade electrics throughout center and building a new mechanics training building. We are excited about new and expanding opportunities to help the rural poor which village level business in particular the Piggy Bank Project which seeks to produce and supply better yielding crossbred pigs and also provide technical and disease management advice. Expanding 'Pads in Bags, is our reusable sanitary pad project which Supplies 100 rural girls each month with free products made by our sewing project. We aim to expand and stren9then the technical back-up service of our team which helps the rural poor take the important steps to improve their families lives and also to research new farming methods. We will continue to seek out like minded partners to help as many poor people in as many suitable/sust3inable way5 as possible,. We will seek to strengthen our governance and procedures but implementing the actions highlighted in our financial review so we have a strong accountable structure to carry the expanding work.
INCOME & EDUCATIONAL PROJECTS OVERVIEW The Piggy Bank Project produces and provides improved high quality piglecs co the rural poor along with Fe animal health care through our village outreach team. At the end of 2023 the Pig Breeding Centre phase wa5 completed. New lrnproved breed stock Imale Lao native black x female Landrace pink) 5carting to produce better piglets which is being well received by the rural poor. Bulk feed for farmers 15 progressing well so they can reduce Iheir feeds costs. The Mekong Vocational Center is doing great work providing trades, ski115 and equipment co rural families. During 2023 we were Yery honoured when UK Ambassador john Pearson led the Lao Diplornatic Corp visa to us with the Ambassadors from UK, EU, Singapore, Malaysia. Timor-Leste,Thailand, Canada and the United Nations. The LIN K men's project trains and equips rural village men with the new skills they need to make an income and to raise cheir social status through motorbike repairs & maintainance 98 rural young men and women crained in repairs and equipped wilh tools. The Dlgnlty women's project5 trains and equips rural village women at risk of trafficking with the sewing and craft skills they need to make an income and to ralse their social status so they are able to 5t7dY in their own safe communitie5. 99 young women from minority tribes trained and equipped with sewing machines. 112 with Hair & Be2ucy Salon New mens barber teacher trained The Flsh Ald hatcheries produce and Supplied approx 2 million high quality Tilapia fry (baby fish) & frogs ¢0 + 100 rural poor families to grow for food and sell for incom¢. Following from rhe success of day training sessions in our other proje¢ts, we have a150 orgaftlse short-term Aquaculture trainings so more villagers are more able to attend. The Mushroom Prolect produces high quality mushroom spores and trainslequips rural poor families to help start micro mushroom farms beside their homes to supply their villages. MuSiifioOM 93 families have been trained and equipped to start thesr own mushroom farms. Improved mushroom production haye been introduced following farmer requests. Bamboo Schools provides essential and much needed educational Supplies to rural school children e.g s¢hool uniforms, books. pens. play mats, white boards et¢ BIMBQC 3 rural prlmary schools1200 kids approxl are being partnered and supplied wich educational equipment and supplies. along with new sponsorship scheme to pay school fees for rur21 poor children at risk of having to stop their education.
EMPATHY INTERNATIONAL Trustees, Report (Cop71inued) The Trustees, Report is approved by tl)¢ Board and sign¢d on its behalf by.. Naoml Hepburn Tru,Yiee Thomas Doble Truslee 28 February 2024 28 February 2024
EMPATHY INTERNATIONAL INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF EMPATHY INTERNATIONAL I report oli tl)e accounts of Empathy International for the year ended 31 December 2023 wliich are set out oli the preceding pages. Respective responsibilities of Empathy International and examiner The tlletnbers of Empail)y Interiialional are responsible for Ilie preparation of Il)e accounts and consider ihat an audil is not required for th¢ year under section 144(2) of th¢ Charities Act 2011 (Ihe 201 l Act) and that an independent examination is needed. It is my responsibility to: examine the Accounts under section 145 of the 201 l Acl. to follow tlie procedures laid down in the general Directions given by the Charity Cominission under se¢lion 145(5)(b) of the 201 l Act; end lo slate wlietlier particular mallers liave come to my attention BASIS of independent exAmlner's report My examinftlion was carried out in accordance with the general Directions given by the Charity Commission. Ai) exainiiiatioii iiicludes a review of tlie accoLlI)ting records kept by Empatl)y Ii)lernalional and a ¢omparison of tlie accounts presented with Il)ose records. It also includes coi)5idering any uiiusual items or disclosures li) the accounts. and seeking explaiialions froin yoii as Empathy Ii)ternational members concerning any such Inalters. Tlie proLedures uiidertak¢ii do not provid¢ all (l)e evidence tliat would be required iii an audit and ¢on5equently no opiiiion is given as to whethcr tl)e accoui)ts present a 'true and fair view" and the report is limited to Il)ose Inatters set oiil in Ilie stateinei)t below. Independent examiner's statement In coni)ection with Iny examination, no mRtter has come to my atteiition:_ which gives me reasoiiable cause lo believe that in any material respect th¢ requireinenls.. to keep a¢countii)g records in a¢cordan¢e will) se¢lion 130 of Ili¢ 2011 A¢1; and to prepare account5 wl)icli accord with the accoiinling records aiid ¢omply with the a¢¢ountin8 requirements of the 2011 Act l)ave not been met; or (2) to which, in my opinion. attention sliould be drawii in order to enable a proper understanding of th¢ accounts to reached. CrRig Chapman Bse (Hons) ACA 4 Tregariie Terrace St Austell Coriiwall PL25 4BE 28 February 2024
MPATHY INTERNATIONAL Statement of Financial Activitle5 (including In¢om¢ and Expenditure Account) For the year ended JJ Decepnber 2023 Restrieted income funds Unrestricted fund8 Prior yeai. funds Nol¢ Total funds Income Income And endowments from: Donatioi)s and legacies Charitable activilics Iiivesttnenls 17,672 854 33270 18526 33270 23 28,824 30.900 23 Tolnl 17,695 34,124 51,819 59,729 Exi)enditure Kxpi'nililure on: Raisiiig funds Charitable activilies 19,739 36,370 56,109 57.677 Tolal 19,739 36J70 56,109 57,677 Net movement In funds (2,044) (2246) (4,290) 2.052 Reconcilihtion of funds.. Total fiinds broLiglit forward 4,230 4,032 8,262 6,210 Total fund5 C*Tricd fonvard 2,186 1,786 3,972 8,262 The Siatcinenl of financial activities incliides all 8sins and losses recognised in the year. All in¢om¢ and expei)diture derive from ¥oiitlllUi118 activities. The notes oi) pages l O to 15 fom) an inte8ral part of these financial 5tatetnent5.
EMPATHY INTERNATIONAL (Registration number- 1156970) Balance Sheet us. ai 31 Decetnber 2023 Note 2023 2022 Fixed assets Tangible assets 706 1.602 Current a8s¢t$ Debtors Casli al bai)k and iii haiid 600 2,996 6,990 3.596 6.990 Creditors: Amounts falling due within one yeAr (330) (330) Net current 1188ets 3,266 6.660 Net assets 3,972 8,262 The funds of th¢ chArlty: Total reslrictod funds 1,786 4,032 Unrestrlctcd fun(Is Ui)r¢slricl¢d ii)coiiie 2,186 4,230 Total chArity fund& 3,972 8,262 For tlie financial year ei)d¢d 31 December 2023 tlie coinpany was eiititl¢d to exemption from audit. Trustees r¢spon5ibilities: Tlie memb¢rs hav¢ not reqiiired the company to obtain an audit of its financial 51atement5 for Il)e year in qiieslion in accordance with section 476. and Tlie trustees acknowledge tlieir responsibilities for complying with the requiremen15 of Il)e Act with respect to accoiinting records and Il)e preparation of fii)aiicial statcmcnls. Approved by Il)e Board and signed on its behalf by.. Naoml Hepburn Trus¢ee Thomas Doble Tru31ee 28 February 2024 28 February 2024 The notes on pages 10 to 15 forni an integral part of th¢s¢ financial statemenls.
EMPATHY INTERNATIONAL Notes to the Financial Statements for the Year Ended 31 December 2023 l. Accounting policies Busis ofaccollnting Tlic accouiits have bceii prepared underthe historical c05t conveiilion w)d in accordance willi the Statement of Recoinmended P]actice'. Accounting and Repotiu)¥ by Charities ptparing their accounts in accordw)ce wilh Fin)cIal Reporting Standard applicable in the UK and Republic of Iteland (FRS102) issued on 16 July 2014 and )¢ Clwilies Act 201 l. Tile clwily Loi)sliluies a publii beiiefil enlily as d¢fin¢d by FRS 102. FiiiiiloeeouiiliiiRpolicy Uiirestricted iiicoiiie fuiids are genal fvndsthat available foruse atti)¢tNsteeg discretion in furtherance of tli¢ objectives of the charity. Restricted fvnds ar¢ those donated for use in a parti¢ularar¢a or for $IfiC PUOSes. the use of whith is restrict to that aa or piwpose, Furthw details of eacli fvnd a disclos¢d in nol¢ 12. Jncome Tli¢re lias be¢ii iio offseltiiig of &ssds and liabiliti or iiicome ai)d expens unless rwuired orpemiitted bythe FRS 102 SORP or fRS 102. Iteins of incoine are recognised aiid included in tl)e accounts when all of tlie followii)g criteria are met: Ihc. cl)arity l)#s eiiliilemenl lo the funds. any peifon))aiice eoj)dilioi)s at(aclied to d)e ilem(s) of incoine have i) Inet orwE fiilly withii) the control ofthe cl)arity,' Iliere is sullicieiit ceitainty that Irceipt of the incoine is considered probable- ai)d th¢ ainoiinl ¢aii b¢ Ineasur¢d r¢liably. Expeiiclliure Liabilities aJE recognised as SLXMI there is a legal orconsthctive obligation committing the charity tothe eX1)di1re. All exELndiIu is accounod foron an accnkqls basis h&$ classified Linder headings that aggregRte all costs r¢lated to the cal¢gory. Clwitable exp&)diture comprises those costs incUed by the cliarity li) the delivery of its activities and setvices for its ki)¢ficiari¢s. It ii)cludcs botli costs that Can be allocated di1]Y lo such activities and t])ose costs of an indirect i)ature necessary to support them. Governance eosrf Gov¢maii¢c costs incliidc costs ofthe pr¢paralion and ayamination of th¢ statutory a¢unts. the ¢¢ts0fVStee In¢etings and tli¢ $t of any legal advice to tStee$ on g0veni1 or ¢onstitutional matters. Siipporfcosfs Support ¢osls iiicludc ¢¢ntral n¢t10]iS and have been all01¢d to aclivity cost categorie5 on a basis consislenl with the use ofresoutres, for example. allLKating propety costs by floorarea& or pcr capitA stsff costs by the tiine spent and odier costs by their usage. Firedassets Individual fixed assets costing £500 or more are initially )rcorded at St. 10
EMPATHY INTERNATIONAL Notes to the Financial Statement5 for tbe Year Ended 31 December 2023 fconlinued) l. Acwunting policies (coNliiiuecl) Foreign Currencies Assets and liabilities iii foreig]i curraicies a traiislated into sterling at th¢ rates of exciiangc Tulingat (lie balaj) sli¢¢t date. Transactioiis ii)to fo17 cu]Tencies are translated at the rat¢ of ex¢hang¢ ruling atthe date of the traiisaction. Ongoing transactions ar¢ also are trw151aled at thc rate of exchange ruling at the daÉe of the transaction. Exchange differences are taken into a¢count in arriving al the ope¥ating resulL Deprec'ialion Depreciatioii is providd on tan ible fixed assets so as lo write offthe e05t or valuation, lessany esliinated residual value, over t eir expected useful ecoi)omic life as follows.. OfficequipneJ)t 33 % straight line basis 2. Income 2.1 Voluntary Income Restrieted Income funds Unrestrlcted fundy Total funds Prior year funds Appeals and donalioi)s Gift Aid tax r¢cl4iined 17,U72 CIOO 854 17,926 600 26,973 1,851 17,672 854 18,526 28,824 2.2 Income from charitable activities Rc8trlcted income fund8 Unrestricted funds TotAI funds Prlor year funds Income from charitable grants 33,270 33,270 30,900 33,270 33,270 30,900 2.3 Inve5tmellt Income Restricted income funds Unrestricteij funds TotAI funds Prior year funds Interest on cash deposits 23 23 23 23
EMPATHY INTERNATIONAL Notes to the Financial Slatements for the Year Ended 31 December 2023 (conlinued) 3. Cost5 of Raising Funds Total 2023 Total 2022 Unrestricted Restricted Fundraisii)g costs Coiisuliancy fees 4. Charitable Activities Total 2023 Tot*1 2022 Unrestricted Restricted Direct Cost5 Siipport for fisl) and frog farming Support for MLishrooiii fai'ms Siippon for Digi)ity projcei Siipport for Coinpassioii projects Support for Piggy Baiik project Siipport for farmii)g projccls Support for M¢koi)g VC 2,928 5,099 7,008 4,534 9,936 9,633 3,776 2,360 6,037 573 2,924 5,517 22.541 4,645 2,701 7J46 22,127 22,127 Tot#1 Direct Cojts 12,672 36,370 49,042 43,728 52
EMPATHY INTERNATIONAL Notes to the Financial Statements for the Year Ended 31 De¢emb¢r 2023 (eontiiiued) 4. Charitable Activities (continued) Total 2023 Total 2022 Unrestricted Rostrict¢d Support Cosls Equipinenl, repairs and reiiewals Printing, postage aiid statioi)ery Charity proje¢t travel Advertising and website Bic l)k ¢l)arg¢s Exchange {gain)/loss Depreciatioii of office equipment 956 23 4,800 90 276 {304) 896 956 23 4,800 90 276 (304) 896 409 243 10,080 1.004 225 762 896 TotAI Support Costs 6,737 6,737 13,619 Governance Costs Independeiit Exaiiiinalioii 330 330 330 Total Governmen¢ Costs 330 330 330 Total Expendlture 19,739 36,370 56,109 57.677 5. Tru8tces' remunLratlon Trust¢e5 received no remuneration or benefits in kind durii)g Iliis or the prior year. 6. Net (expcnditMre)lincome Nel (expenditureyincoine is staled after cl)argin8'. 2023 2022 Auditors remuneration- Indepei)dent examiiiation Depreciation of tangible fixed assets 330 896 330 896 13
EMPATHY INTERNATIONAL Notes to the Financial StateTnents for tlie Year Ended 31 December 2023 (coiiilnued) 7. Tangible fixed Assets 0]ee equipment Cost As at l January 2023 and As At 31 December 2023 7,002 Depreclation As al l January 2023 Charge for the year 5,400 896 As at 31 December 2023 6,296 Net Book Value As at 31 December 2023 706 As al 31 December 2022 1,602 8. Debtors: AmountB falling Ilue within one yeAr 2023 2022 Other debtors - gift aid reclaim 600 600 9. Creditors: Amounts f#lling due wlthln one year 2023 2022 Accruals and d¢f¢rred income 330 330 330 330 14
EMPATHY INTERNATIONAL Notes to the Financial StateTnents for the Year Ended 31 December 2023 (conrfiiiued) 10. Members, liability The organisation is 8 charitsble incorporated organisation and as such there is no metnbers liability on winding up tlie charity. 11. Related parties Controlling entity The charity is controlled by the Iruste¢s of the charitabl¢ incorporated organisation. 12. Analysls of lund$ At l January 2023 As8t31 Deeember 2023 Ineoming Resources resources expended GenerAI Funds Unrcstricled incoine fiiiid 4,230 17.695 (19.739) 2,186 R¢stri¢ted funds InLui))¢ geii¢ruliiib projects 4,032 34.124 (36.370) 1,786 8,262 51,819 (56,109) 3,972 13. Nct assets by fund Unrestricted Reytrlcted funds funds Total funds Prior year funds Taiigible ass¢ts CLirrent assets Creditors.- Ainounts falling due withiii one year 706 1,810 706 3,596 1,602 6,990 1.786 (330) (330) (330) Net Assets 2,186 1,786 3,972 8,262 15