## Just Earth Limited 

Annual Report and Accounts For the year to 31 December 2020 



## **Contents** 

|Charity Information|2|
|---|---|
|Report of the Trustees|3 - 8|
|Report of the Independent Examiner|9|
|Statement of Financial Activities|10|
|Balance Sheet|11|
|Notes to the Accounts|12 - 21|



1 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Charity Information** 

|Charity Name:|Just Earth Limited||
|---|---|---|
|Working Names:|Just Earth||
|Registered Numbers:|Company Number:|9092105|
||Charity Number:|1158050|
|Registered Office:|15 Lime Trees Avenue||
||Llangattock||
||Crickhowell||
||Powys NP8 1LB||
|Website address:|www.justearth.org||
|Trustees:|Rev Bruce Collins||
||Mr David Cross||
||Mrs Alex Lloyd Davies||
||Rev Evelyn Lee-Barber||
||Mr Gerwyn Miles||
||Mr Peter Tyler||
|Secretary:|Mr Gerwyn Miles||
|Independent Examiner:|Steve Ellum & Associates Ltd||
||Chartered Accountants||
||Adulam House||
||Glan Yr Afon||
||Llanelli||
||SA15 3QB||
|Bankers:|CAF Bank Ltd||
||25 Kings Hill Avenue||
||Kings Hill||
||West Malling||
||Kent||
||ME19 4JQ||



2 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Report of the Trustees (incorporating the directors’ report) For the Year to 31 December 2020** 

The trustees present their report and the independently examined financial statements of the charity for the year ended 31 December 2020, which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. 

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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). 

## **Objectives and Activities** 

The Charity's objects are: 

(a) the relief and/or prevention of poverty in such ways as the Trustees may see fit; (b) to advance the Christian faith in such ways as the Trustees may see fit. 

Just Earth Limited’s (‘JE’) main focus is to benefit those living and working in Kenya, such as farmers and individuals from rural villages, to improve their farming methods and help set up small businesses, thereby helping alleviate poverty in their communities and provide a sustainable income. 

The charity does this, in the main by providing extensive regular training for poor rural farmers over a two-year period by trained agricultural facilitators, co-ordinated through our qualified Agronomist. This weekly training on demonstration plots, covers well-established agricultural methods, nutrition, hygiene, finance management, and entrepreneurship, along with key biblical teaching on life principles central to the Kingdom of God. Another core part of the programme involves making loans to these farmers equivalent to the farming inputs required to farm up to one acre of land using the farming model developed by JE. 

The charity makes this assistance available through bringing farmers together into groups, forming farmers' field schools (FFS), providing farmers with the knowledge, confidence, finance training and support they need to produce better crops and become stronger disciples of Jesus. This model is designed in a way that is easily transferable to other regions and nations where suitable partners are identified. 

## **Achievements and Performance** 

JE started 8 new FFS’s in 2020, which when added to the 9 schools started in the previous year, meant that a total of 17 schools were operated during the year (total of 11 schools in 2019), across 7 geographical regions. These 17 schools represented approximately 504 farmers taking part in FFS’s operated solely by JE in Kenya during 2020. Typical family sizes are 7 which means that there were approximately 3,500 lives directly impacted by the project during the year, in terms of increased food being produced and consumed, as outlined in Table 1 below. JE farmers are encouraged to share what they learn with their neighbours and it is estimated that on average each farmer helps 4 of their neighbours improve their farming practices, which if you assume that each farmer belongs to a family of 7 members, then an additional 14,000 people were indirectly impacted by the FFS programme during the year. 

3 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Achievements and Performance (continued)** 


2020 was an extraordinarily challenging year for many, as the COVID19 pandemic unfolded, causing much suffering, as families lost loved ones and economic hardship followed government imposed societal restrictions, in order to slow down the spread of the virus. Our heartfelt sympathy goes to all who lost loved ones during this time. The JE FFS programme did not escape these challenges, as in late March, just after all our FFS’s received their farm inputs for the long rains season, government restrictions came into force which prevented all FFS’s from meeting on a weekly basis, to receive training and share fellowship. God was so faithful and our staff were amazing, acting very quickly to mitigate the potential threat of these restrictions on the FFS members, by creating a way for our facilitators to contact our farmers regularly by telephone. This regular contact enabled our facilitators to continue guiding our farmers on what to do next and help them with any difficulties they might encounter, demonstrated by the way they so quickly tackled the real threat of Army Worms in Magori, which emerged shortly after the restrictions took hold. 

A detailed impact survey conducted by JE at the end of 2020 and summarised in Figure 1 below, indicates that food production for farmers in the project was significantly increased above production levels prior to joining the programme. This means that many farmers were able to produce enough food to meet their family’s dietary requirements with surpluses being sold to help raise disposable income, even in such challenging circumstances. The study concluded that despite the adverse conditions caused by COVID-19, that the impact of the two and a half months of FFS training before the restrictions were imposed, the subsequent “Phone Farming” which took place on a farmer-by-farmer basis and the supply of high-quality farm inputs (just in time), helped to improve overall yields to 3.6 times the pre-FFS position. The study highlights that with roughly the same acres committed to maize production, that farmers in the programme in total, produced 337 tones of maize compared to only 93 tonnes before joining the project. This equates on average to around 668Kgs of maize produced by each farmer, to feed their family, compared to around 185Kgs prior to joining their FFS. 

4 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Achievements and Performance (continued)** 


A core principle of the FFS is improving members nutritional intake by introducing crop diversity. During the year our farmers produced many crops other than maize, like: Beans, Sorghum, Millet, Cassava, etc, which all adds to better nutritional intake, which in turn improves health and the ability of children to learn in school. 

The improvement in yields experienced by our farmers not only helped to prevent hunger, but in many cases resulted in surplus produce being available to sell. During the year our farmers in total across all the schools sold crops and received income amounting to KAS7,967,482, which equates to an average of KAS16,668 (around £110) per farmer. 

It is humbling to see the people we are helping being so willing to share from what little they have. In 2020 our farmers gave almost 10% (KES717,311 in total or approximately £10 per farmer on average) of the value of the total income they received from the sale of produce to the local churches to help fund their ‘widows and orphans’ programmes. 

On the environmental side, JE farmers planted 29,553 trees on their farms during the year, helping to reduce their carbon footprint, prevent soil erosion and provide nutritional supplements to their families, in the form of fruits and herbal remedies. 

Much has been learned during the year, particularly in terms of running training over video conference via Zoom. We initiated the previously developed Pastors Essentials programme, via Zoom, with a local vicar, as a pilot for a broader launch later across the other regions. This worked much better than we expected and paved the way for the organisation of the broader programme in 2021. 

While the programme was still able to deliver significant improvement in yields compared to the pre-FFS position despite all of the restrictions, the restrictions did significantly affect our ability to deliver the training programme, as this is done via collective weekly gatherings on demonstration plots. The restrictions also impacted our ability to recruit new farmers to the FFS programme in 2021, as it prevented the normal field school open days, where prospective new farmers can see for themselves the demonstration plots in operation. As a consequence, it was decided to not recruit any additional schools for 2021 and to roll the existing schools over into the following years, so that the gaps in learning get plugged. 

5 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Achievements and Performance (continued)** 

The most severely impacted part of our programme was the commercial farm in Kitale. While most of the planned capital investment took place, COVID-19 severely impacted the local markets with prices falling significantly. Coupled with this, there was unprecedented flooding experienced in a number of regions across Kenya, Kitale being one such region. This caused some of our produce to be ruined, which added to the burden already caused by the pandemic. As such, the pilot we hoped to run during the year could not be classed a pilot and will run on into 2021. 

A central part of the programme is sourcing and supplying quality farm inputs, such as certified seed, fertilizer and farmyard manure, which is supplied to each farmer in the form of an interest free loan. The administration of these loans requires significant managerial resource and is more directly aligned with the spiritual leadership provided by the local churches. Hence, we have developed a process and plan in conjunction with region church leaders, to transfer the responsibility for the management of these loans to the regional church leadership or SACCO’s. The plan is to use 2021 to fine tune the process and iron out the agreements in readiness to implement in 2022. 

We continue to see lives changed as farmers become more effective at growing their traditional crops, diversifying into new cash crops, and being discipled in the Christian faith. 

## **Public benefit** 

We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future projects. In particular, the trustees consider how planned projects will contribute to the aims and objectives they have set. The paragraphs above provide further information. 

## **Structure, Governance and Management** 

## **Governing document** 

Just Earth Limited is a registered charity and company limited by guarantee, governed by its Memorandum and Articles of Association dated 11 June 2014. 

## **Recruitment and appointment of Trustees** 

The governing body of Just Earth Ltd is the board of trustees who meet from time to time to discuss the affairs of the Charity. The day to day management operations are overseen by Peter Tyler (Director) and David Cross (Director), and financial management is overseen by Gerwyn Miles (Director). 

We remain hugely grateful to our Church and individual partners for their generous and very faithful support. 

## **Induction and training of Trustees** 

The need for new Trustees is reviewed regularly, and when appropriate, names are presented at a trustees’ meeting for consideration. The existing trustees make any new appointments. New trustees are given copies of the Memorandum and Articles of Association, copies of previous accounts and the opportunity to discuss questions with existing trustees. A third of all trustees are required to retire at each Annual General Meeting, although they are allowed to stand for re-election. Upon appointment trustees are informed of their obligations in law as a trustee of a charity, and are encouraged to acquaint themselves with the publications and guidance available from the Charity Commission. 

6 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Financial Review** 

## **Performance in the Year** 

Donations totalling £159,840 were received during the year from individuals, churches and by way of grant from charitable trusts. Other income totalled £33,453 resulting in total income of £193,293. Expenditure during the year totalled £177,407 and was focused on farm school activities in Kenya, and on project management and development from here in the UK. As activities expand, development of additional infrastructure and routes to market farmer’s crops need to be established within Kenya. The continuing development of Just Earth in Kenya is extremely important to us, and we are grateful to our supporters for their generosity, which enables our future plans to be expanded. 

The result for the year was a surplus of £11,835 (2019: £49,823). The pattern of donation income includes periodic substantial support from a few sources, and this can lead to significant variation in donation income between years.  The directors are content with the position of the charity, and continue to widen the supporter base to ensure that activities are undertaken on a sustainable basis. 

## **Reserves policy** 

It is the policy of the charity to try to hold unrestricted reserves, not designated for a specific use where possible, to enable a greater level of discretion for funding charitable activities. However, where donors give specific instructions for the use of their gift, the charity will hold these donations as restricted funds. We also aim to have at least 6 months’ operating costs in reserve, so that should funding cease, we can make a responsible and managed exit from our projects. With our General Fund at £236,339 (December 2019: £224,504) this allows adequate resources to maintain the work of the charity. 

## **Future Plans** 

Over the next year, JE will continue to run Farmers' Field Schools (FFS) in existing regions of Kenya and has decided not to recruit any new schools in 2021. The government restrictions caused by the pandemic severely hampered the recruitment process, which is centred around demonstration plot field days, which couldn’t take place. Because the restriction prevented our schools meeting for large durations throughout 2020, there were significant gaps in the training modules, which we felt could only be overcome by rolling the existing FFS’s on into 2021, without advancing. We will continue the training programme in 2021 with second year schools graduating at the end of 2021/early 2022. 

There are 6 first year and 5 second year FFS’s planned to operate in 2021 across 5 regions, representing a total of 249 farmers across 49 churches. Some of the schools which operated in 2020 did not progress into 2021. 

We are constantly looking to develop new and lasting relationships with national and regional church leaders to see the benefits of the work spread further, and also with other like-minded organisations, who through collaboration, can help bring value add to our model. We have been working with Tear Fund to develop a way of integrating their Church and Community Mobilisation Process (CCMP) as a possible pre-cursor to implementing new FFS’s in new regions. This could help tackle the problem of dependency and the need for mindset change. 

The commercial farm pilot which commenced in 2020 has rolled over into 2021, because of the severe impact COVID-19 had on local markets, coupled with 1 in 10-year flooding, which damaged much produce and rendered the pilot ineffective. We plan to fine tune production, better secure our water supply (for the dry season) and look at more specialised greenhouse-based crops to prove the concept. It is still hoped that this will help us move closer to becoming more self- sustainable in the future and form the basis of a new FFS model, which may involve having a commercial farming project powering each regional hub. We see great opportunity for this project to also employ and train orphans, bringing hope to those in most need. 

7 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Future Plans (continued)** 

A core principle of Just Earth is working in partnership with local churches to help empower the poor through training and providing interest free loans to purchase quality farm inputs. As part of this partnership development, much work has taken place developing a means of transitioning the management of the loans from Just Earth to local Diocesan SACCO based systems. We will be fine tuning the process in 2021, in readiness for implementation in 2022, in the belief that this will increase the sense of ownership by the local church and also reduce the administrative burden on Just Earth. 

As mentioned above, much work took place during 2020 piloting the recently developed Pastors Essentials course via a weekly Zoom video conference meeting. The plan for 2021 is to broaden our reach by including more of the regional Bishops and vicars in this weekly Zoom meeting and utilise the previously trained local team to practically aid the process. 

## **Responsibilities of the Trustees** 

The trustees (who are also directors of Just Earth Limited for the purpose of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. 

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including income and expenditure. In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently, 

- make judgements and estimates that are prudent and reasonable, 

- state whether applicable accounting standards and Statements of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements, 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation 

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. 

On behalf of the board on 16 September 2021. 

**Peter Tyler** Trustee 

8 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Independent Examiner’s Report To the Members of Just Earth Limited For the Year to 31 December 2020** 

## **Independent examiner's report to the trustees on the unaudited financial statements of Just Earth Limited.** 

I report on the accounts of Just Earth Limited for the year ended 31 December 2020 set out on pages 3 to 21. 

## **Respective responsibilities of trustees and independent examiner** 

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. 

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to examine the accounts under section 145 of the 2011 Act; to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and to state whether particular matters have come to my attention. 

## **Basis of independent examiner's statement** 

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below. 

## **Independent examiner's statement** 

In connection with my examination, no matter has come to my attention: 

- (i) which gives me reasonable cause to believe that in any material respect the requirements: 

   - to keep proper accounting records in accordance with section 386 of the Companies Act 2006; and 

   - to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met; or 

- (ii) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. 

........................................................... 

**Steve Ellum Steve Ellum & Associates Ltd** Chartered Accountants Adulam House Glan Yr Afon Llanelli SA15 3QB Date: 16 September 2021 

9 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Statement of Financial Activities (including income and expenditure account) For the Year Ended 31 December 2020** 

|**Unrestricted**<br>**Restricted**<br>**Notes**<br>**funds**<br>**funds**<br>**£**<br>**£**<br>**Income from:**<br>**Donations and legacies**<br> **3**<br>159,840<br>-<br>**Charitable activities**<br> **4**<br>24,707<br>-<br>**Activities for raising funds**<br>Trading activities<br> **5**<br>8,651<br>-<br>**Investments**<br>Bank interest received<br>95<br>-<br>**Total Income**<br>193,293<br>-<br>**Expenditure on:**<br>**Raising Funds**<br>**6**<br>Operating costs of trading activities<br>30,166<br>-<br>Fundraising costs<br>   <br>580<br>-<br>**Charitable activities**<br>**7**<br>146,661<br>-<br>**Total Expenditure**<br>177,407<br>-<br>**Net income**<br>15,886<br>-<br>**Other recognised (losses)/gains**<br>Foreign exchange (losses)/gains<br>**8**<br>(4,051)<br>-<br>**Net Movement in Funds before transfers**<br>11,835<br>-<br>Transfers between funds<br>30,836<br>(30,836)<br>**Net Movement in Funds after transfers**<br>42,671<br>(30,836)<br>Total funds brought forward<br>193,668<br>30,836<br>**Total funds carried forward**<br>**14**<br>236,339<br>-|**Total**<br>**2020**<br>**£**<br>159,840<br>24,707<br>8,651<br>95<br> <br>193,293<br> <br>30,166<br>580<br>146,661<br> <br>177,407<br> <br>15,886<br>(4,051)<br> <br>11,835<br>-<br> <br>11,835<br>224,504<br> <br>236,339|**Total**<br>**2019**<br>**£**<br>274,289<br>21,374<br>-<br>312<br>295,975<br>  <br>9,164<br>5,070<br>230,707<br>244,941<br>51,034<br>(1,211)<br>49,823<br>-<br>49,823<br>174,681<br>224,504|
|---|---|---|



**The notes on pages 12 to 21 form part of these financial statements.** 

10 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Balance Sheet at 31 December 2020** 

|**Notes**<br>**Fixed assets**<br>Tangible assets<br>**10**<br>**Total fixed assets**<br>**Current assets**<br>Stock<br>Debtors<br>**11**<br>Cash at bank and in hand<br>Creditors: Amounts falling due<br>within one year<br>**12**<br>**Net current assets**<br>**Total assets less current liabilities**<br>**Net assets**<br>**Represented by:**<br>Unrestricted funds<br>**13**<br>Restricted funds<br>**14**<br>**Total Funds**|**2020**<br>**£**<br>**£**<br>39,235<br>39,235<br>2,845<br>14,387<br>182,516<br>199,748<br>(2,644)<br>197,104<br>236,339<br>236,339<br>236,339<br>-<br>236,339|**2019**<br>**£**<br>**£**<br>28,404<br>28,404<br>2,249<br>22,590<br>179,531<br> <br>204,370<br>(8,270)<br> <br>196,100<br>224,504<br>224,504<br>193,668<br>30,836<br>224,504|**2019**<br>**£**<br>**£**<br>28,404<br>28,404<br>2,249<br>22,590<br>179,531<br> <br>204,370<br>(8,270)<br> <br>196,100<br>224,504<br>224,504<br>193,668<br>30,836<br>224,504|
|---|---|---|---|
||||28,404<br>196,100|
||||224,504|
||||224,504|
||||193,668<br>30,836|
||||224,504|



For the 12 months ending 31 December 2020, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. 

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476. 

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. 

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. 

These financial statements were approved and authorised for issue by the trustees on 16 September 2021 and signed on their behalf by: 

Company Number: 09092105 

**Peter Tyler** Director 

11 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Notes to the Accounts for the year ended 31 December 2020** 

## **1. Company information** 

Just Earth Limited is a company limited by guarantee and registered in England and Wales, registration number 9092105, and a registered charity number 1158050. The registered office is 15 Lime Trees Avenue, Llangattock, Crickhowell, Powys NP8 1LB. 

## **1.1 Basis of preparation of financial statements** 

The financial statements have been prepared in accordance with 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 (FRS102) (effective January 2019) – (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. 

The charity has applied Update Bulletin 1 as published on 2 February 2016 and does not include a cash flow statement on the grounds that it is applying FRS 102 Section 1A. 

Just Earth Limited meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note. 

These accounts include the activities of the Kenyan branch. 

These accounts have been prepared on a Going Concern basis which the trustees continue to believe is appropriate. 

The financial statements are prepared in sterling (£) and rounded to the nearest pound. 

The significant accounting policies applied in the preparation of these financial statements are set out below.  These policies have been consistently applied to all years presented unless otherwise stated. 

## **1.2 Income** 

All income is recognised in the Statement of Financial Activities when the charity has entitlement to the funds, it is probable that the income will be received and the amount can be reliably measured. 

Donations, legacies and similar incoming resources are reported gross and the related fundraising costs are reported in fundraising costs. 

Grants are recognised as income when they are received provided conditions for receipt have been complied with, unless they relate to a specified future period in which case they are deferred. 

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable. 

12 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

**Notes to the Accounts for the year ended 31 December 2020** 

## **1.3 Expenditure** 

All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates: 

_Raising Funds_ represents expenditure incurred in motivating the individual supporters, trusts and other organisations to contribute to the work of the charity; costs associated with the running of the charity shop and investment management costs. 

_Charitable activities_ represents 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 of an indirect nature necessary to support them. 

_Governance_ represents those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. 

All costs including support costs are allocated between the expenditure categories of the SoFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly; others are apportioned on the basis of an estimate of the proportion of time spent by staff on the activity. 

_Support costs_ are those costs which do not in themselves constitute an activity; instead they enable output creating activities to be undertaken. This cost category includes the central or regional office functions such as general management, human resources and payroll administration, budgeting and accounting, and information technology. 

## **1.4 Fund accounting** 

The charity maintains various types of funds as follows: 

_General unrestricted funds_ represent income which can be used in accordance with the charitable objects at the discretion of the trustees. 

_Designated funds_ represent income set aside by the trustees out of general unrestricted funds for specific future purposes or projects. 

_Restricted funds_ represent income to be used in accordance with specific restrictions imposed by donors or which has been raised by the charity for particular purposes. 

## **1.5 Fixed assets and depreciation** 

The threshold for capitalisation of assets is set at £100 per item. Depreciation is calculated using either the reducing balance or straight line methods so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows: 

Farm buildings - 6.7% straight line Motor cycles and vehicles - 25.0% reducing balance Fixtures fittings and equipment - 6.7% to 50% straight line and reducing balance 

## **1.6 Debtors and creditors receivable / payable within one year** 

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price.  Any losses arising from impairment are recognised in the statement of financial activities. 

13 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Notes to the Accounts for the year ended 31 December 2020** 

## **1.7 Stocks** 

Stocks are stated at the lower of cost and net realisable value. 

## **1.8 Cash and cash equivalents** 

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand. 

## **1.9 Foreign currencies** 

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. 

Non-monetary assets purchased in foreign currencies are translated into sterling at the rate of exchange ruling on the date of acquiring the assets. 

Transaction in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the Statement of Financial Activities. 

14 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Notes to the Accounts for the year ended 31 December 2020** 

## **2 Net movement in funds** 

|The net movement in funds for the year is stated<br>after charging:<br>Depreciation and other amounts written off tangible<br>fixed assets:<br>Owned assets<br>Independent examiners fee<br>**3**<br>**Donations and Legacies**<br>**Unrestricted**<br>**2020**<br>**£**<br>Donations from organisations,<br>churches and individuals<br>138,340<br>Other Trusts<br>21,500<br>159,840<br> <br> <br>**4**<br>**Income from charitable activities**<br>**Unrestricted**<br>**2020**<br>**£**<br>Fertiliser and product sales<br>24,707<br> <br> <br>**5**<br>**Income from activities for raising funds**<br>**Unrestricted**<br>**2020**<br>**£**<br>Produce sales<br>8,651|**Restricted**<br>**2020**<br>**£**<br>-<br>-<br>-<br> <br> <br>**Restricted**<br>**2020**<br>**£**<br>-<br> <br> <br>**Restricted**<br>**2020**<br>**£**<br>-|**2020**<br>**£**<br>4,428<br>990<br>**Total**<br>**2020**<br>**£**<br>138,340<br>21,500<br> <br>159,840<br>  <br> <br>**Total**<br>**2020**<br>**£**<br>24,707<br>  <br> <br>**Total**<br>**2020**<br>**£**<br>8,651|**2019**<br>**£**<br>1,917<br>990<br>**Total**<br>**2019**<br>**£**<br>207,840<br>66,449|
|---|---|---|---|
||||274,289|
||||<br>**Total**<br>**2019**<br>**£**<br>21,374|
||||<br>**Total**<br>**2019**<br>**£**<br>-|



15 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Notes to the Accounts for the year ended 31 December 2020** 

## **6 Costs of raising funds** 

|**Unrestricted**<br>**2020**<br>**£**<br>Professional costs<br>-<br>Other costs<br>580<br>Fundraising costs<br>580<br>Operating costs of trading activities<br>30,166<br>30,746<br> <br> <br>**7**<br>**Charitable activities**<br>**Unrestricted**<br>**2020**<br>**£**<br>Farm school activities in Kenya<br>19,318<br>Cost of fertiliser and product sales<br>25,746<br>Project Management<br>7,085<br>Employee costs<br>68,714<br>Meals and entertainment<br>130<br>Travel costs<br>134<br>Motor vehicle costs<br>3,252<br>Administration costs<br>15,486<br>Depreciation<br>1,778<br>Donation to Kenyan church partner<br>-<br>Exchange losses/(gains)<br>5,018<br>146,661|**Restricted**<br>**2020**<br>**£**<br>-<br>-<br>-<br>-<br>-<br> <br> <br>**Restricted**<br>**2020**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|**Total**<br>**2020**<br>**£**<br>-<br>580<br> <br>580<br>30,166<br> <br>30,746<br>  <br> <br>**Total**<br>**2020**<br>**£**<br>19,318<br>25,746<br>7,085<br>68,714<br>130<br>134<br>3,252<br>15,486<br>1,778<br>-<br>5,018<br> <br>146,661|**Total**<br>**2019**<br>**£**<br>3,870<br>1,200|
|---|---|---|---|
||||5,070<br>-|
||||5,070|
||||<br>**Total**<br>**2019**<br>**£**<br>55,293<br>16,438<br>13,972<br>70,985<br>741<br>5,829<br>9,046<br>38,453<br>1,916<br>9,782<br>8,252|
||||230,707|



Administration costs include the Governance costs of £990 (2019: £990) that relate to the Independent Examination of the accounts. 

16 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Notes to the Accounts for the year ended 31 December 2020** 

## **8 Other gains/(losses)** 

||**Unrestricted**|**Unrestricted**|
|---|---|---|
||**2020**|**2019**|
||**£**|**£**|
|Foreign exchange translation losses|4,051|1,211|
||||



The charity operates in two main locations, UK and Kenya.  A significant proportion of transactions, assets and liabilities are denominated in the Kenyan Shilling, and this gives rise to exchange gains and losses during the financial year, and to translation gains and losses at the financial year ends. 

## **9 Staff numbers and cost** 

Employment costs 

|Employment costs|||
|---|---|---|
|Staff salaries<br>Employers pension contributions<br>Employers medical costs<br>Casual and volunteer staff<br>Other staff costs|**2020**<br>**£**<br>67,018<br>4,039<br>4,345<br>7,868<br>151<br> <br>83,421|**2019**<br>**£**<br>67,381<br>4,042<br>2,000<br>1,046<br>6,744|
|||81,213|



All staff are employed by the Kenyan branch. 

## Number of employees 

The average monthly number of employees during the year, calculated on the basis of average monthly head count, was as follows: 

|head count, was as follows:|||
|---|---|---|
||**2020**|**2019**|
|Charitable Activities|6.0|6.0|



No staff member was paid more than £60,000 in the financial year. No trustee received any remuneration during the year (2019: £nil). Expenses reimbursed to the trustees amounted to £134 (2019: £3,938) for travel costs. 

The trustees take an active role in the running of the charity and therefore the total employment benefits, including employer pension contributions, of the key management personnel of the charity were £nil (2019: £nil). 

17 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Notes to the Accounts for the year ended 31 December 2020** 

## **10 Fixed assets - Tangible** 

|**Motor**<br>**Fixtures**<br>**Farm**<br>**Cycles &**<br>**Fittings &**<br>**Buildings**<br>**Vehicles**<br>**Equipment**<br>**£**<br>**£**<br>**£**<br>**Cost**<br>At 1 January 2020<br>7,317<br>23,323<br>15,737<br>Additions<br>4,017<br>-<br>11,242<br>Disposals<br>-<br>-<br>-<br> <br> <br>At 31 December 2020<br>11,334<br>23,323<br>26,979<br> <br> <br>**Depreciation**<br>At 1 January 2020<br>-<br>17,861<br>112<br>Charge for the year<br>717<br>1,311<br>2,400<br>Disposals<br>-<br>-<br>-<br> <br> <br>At 31 December 2020<br>717<br>19,172<br>2,512<br> <br> <br>**Net book values**<br>At 31 December 2020<br>10,617<br>4,151<br>24,467<br> <br> <br>At 31 December 2019<br>7,317<br>5,462<br>15,625|**Total**<br>**Assets**<br>**£**<br>46,377<br>15,259<br>-|
|---|---|
||61,636|
||17,973<br>4,428<br>-|
||22,401|
||39,235|
||28,404|



The purchase of farm buildings and equipment took place in Kenya at the year end using the restricted gifts (see note 13). No depreciation was charged as the transactions took place shortly before the yearend. 

## **11 Debtors** 

|Farmers loans<br>Other loans<br>Prepayments<br>Other debtors<br>|**2020**<br>**£**<br>3,736<br>1,142<br>6,678<br>2,831<br> <br>14,387|**2019**<br>**£**<br>918<br>1,264<br>12,425<br>7,983|
|---|---|---|
|||22,590|



18 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Notes to the Accounts for the year ended 31 December 2020** 

## **12 Creditors: Amounts falling due within one year** 

|**2020**<br>**£**<br>Trade creditors<br>134<br>Accruals<br>2,510<br> <br>2,644<br> <br>**13**<br>**Unrestricted Funds**<br>**General**<br>**Fund**<br>**£**<br>Balance at 1 January 2020<br>193,668<br>Net income for the year<br>15,886<br>Foreign exchange losses<br>(4,051)<br>Transfers<br>30,836<br> <br>Balance at 31 December 2020<br>236,339<br> <br>**14**<br>**Restricted Funds**<br>**Commercial**<br>**Farm**<br>**Fund**<br>**£**<br>Balance at 1 January 2020<br>30,836<br>Net income for the year<br>-<br>Foreign exchange losses<br>-<br>Transfers<br>(30,836)<br> <br>Balance at 31 December 2020<br>-|**2019**<br>**£**<br>336<br>7,934<br>8,270<br>**Total**<br>**£**<br>193,668<br>15,886<br>(4,051)<br>30,836<br>236,339<br>**Total**<br>**£**<br>30,836<br>-<br>-<br>(30,836)<br>-|
|---|---|



The Commercial Farm Fund is to enable the charity to launch a commercial farm activity in Kenya and was funded by a donation of £40,000 received in 2019.  The aim was to establish a source of income in Kenya that would contribute towards the cost of providing the charitable Farm Field Schools.  In the past two years this money has been spent on the purchase of fixed assets and other start-up costs. The full amount of the restricted funding has therefore been applied in accordance with the donor’s stipulations and so with the restrictions on this fund being met, the balance was transferred to the General Fund. 

19 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Notes to the Accounts for the year ended 31 December 2020** 

## **15 Analysis of net assets between funds** 

|**Unrestricted**<br>**Funds**<br>**£**<br>Tangible assets<br>-<br>39,235<br>Cash at bank and in hand<br>-<br>182,516<br>Other net assets/(liabilities)<br>-<br>14,588<br>-<br>236,339|**Restricted**<br>**funds**<br>**£**<br>-<br>-<br>-<br>-|**Total**<br>**Funds**<br>**2020**<br>**£**<br>39,235<br>182,516<br>14,588<br> <br>236,339|**Total**<br>**Funds**<br>**2019**<br>**£**<br>28,404<br>179,531<br>16,569<br>224,504|
|---|---|---|---|



## **16 Taxation** 

As a charity, Just Earth Limited is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity. 

## **17 Related parties** 

The charity is related to the Maseno Trust in that Rev Bruce Collins, Alex Lloyd Davies, David Cross and Gerwyn Miles are directors and trustees of both charities. Just Earth Ltd is a corporate entity, formed to do the work of the Maseno Trust, which is now dormant. There were no related party transactions between the two charities during the year (2019: £nil). 

The charity is also related to Just earth USA, Inc., in that Rev Bruce Collins, Peter Tyler and Gerwyn Miles are directors of both the charity and the corporation.  The charity funded legal and professional costs totalling £3,870 to establish the corporation (a not-for-profit incorporated on 9 August 2019), whose purpose is to assist with raising funding for the charity’s activities, by providing a tax efficient means for US donors to support the work of the charity. 

The total amount of donations received during the year from related parties was £12,857 (2019: £18,501). 

## **18 Controlling parties** 

In the opinion of the trustees there is no single ultimate controlling party of the charity. 

## **19 Company limited by guarantee** 

Just Earth Limited is a company limited by guarantee and accordingly does not have a share capital. Every member of the company undertakes to contribute such amount as may be required not exceeding £10 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member. 

20 



Just Earth Limited – Annual Report for the Year to 31 December 2020 

## **Notes to the Accounts for the year ended 31 December 2020** 

## **120 Statement of Financial Activities (including income and expenditure account) for the year ended 31 December 2019** 

|**Unrestricted**<br>**Restricted**<br> **funds**<br>**funds**<br>**£**<br>**£**<br>**Income from:**<br>**Donations and legacies**<br>234,289<br>40,000<br>**Charitable activities**<br>21,374<br>-<br>**Investments**<br>Bank interest received<br>312<br>-<br> <br>**Total Income**<br>255,975<br>40,000<br> <br>**Expenditure on:**<br>**Raising Funds**<br>  <br>5,070<br>-<br>**Charitable activities**<br>230,707<br>9,164<br> <br>**Total Expenditure**<br>235,777<br>9,164<br> <br>**Net income**<br>20,198<br>30,836<br>**Other recognised (losses)/gains**<br>Foreign exchange (losses)/gains<br>(1,211)<br>-<br> <br>**Net Movement in Funds**<br>18,987<br>30,836<br>Total funds brought forward<br>174,681<br>-<br> <br>**Total funds carried forward**<br>193,668<br>30,836|**Total**<br>**2019**<br>**£**<br>274,289<br>21,374<br>312<br>295,975<br>  <br>5,070<br>239,871<br>244,941<br>51,034<br>(1,211)<br>49,823<br>174,681<br>224,504|
|---|---|



21