Home Leone Limited Home Leone Limited (Trading as Home Leone) Report and Financial Statements for the year 1 May 2023 to 30 April 2024 Charity no: 1158211 Company no: 8974510 Park House Botley Road Bishops Waltham Southampton S032 1DR Home Leone Limited Contents Pages Legal and Administrative Information Report of the Trustees Report of the Independent Examiners Statement of Financial Activities Balance Sheet 10 Cash Flow Statement Notes Forming Part of the Financial Statements 12-19 Home Leone Lirnited Le al and Administrative Information Constitution Home Leone is a company limited by guarantee and a registered charity governed by its Memorandum and Articles of Association. Charity number.. 1158211. Company number: 8974510. Directors and Trustee5 The directors of the charitable company (hereafter referred to as 'the charity,) are its trustees for the purposes of charity law and throughout this report are collectively referred to as the trustees. The trustees serving during the period and since the period end were as follows: Mr N Hyd8 MBE Dr R Massey (formerly Dr R Taylor) Ms C Pither Dr C Thursfield Mr D Fletcher Mr C Brecht Mr D Ingram New trustees are appointed by a majority ballot of the existing trustees. The induction and training programme for new trustees comprises a detailed discussion and orientation by the Chairman. Each new trustee confirms their agreement with the founding charity documents and agrees what contribution they expect to make. Chairman and Company Secretary Nigel Hyde Senior staff Clive Thursfield Sahr Ndomhina Registered offlce Park House, Botley Road, Bishops Waltham, Southampton, S032 1 DR Principal bankers Lloyds Bank PLC UBS Independent examiner A J Bennewith FCA, FCPA, FFA, FFTA, DChA, FRSA, Bennewilh 2018 Limited 18 Farnham Road, Guildford, GU14XA Solicitors Spencèrs Solicitors, Spire Walk, Derby Road, Chesterfield, S40 2WG Home Leone Limited Directors Report for the Year Ended 30 April 2024 The directors, who also act as trustees, present their report with the financial statements of the charity for the year ended 30 April 2024. The trustees have adopted the provisions of 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 2015) and the charity's Memorandum and Articles of Association. The accounts have been prepared in accordance with the accounting policies on pages 13 to14. Purpose and Aims Vision To see thousands of people enabled to exit slums and living in quality homes in vibrant sustainable communities. Mission To establish a robust and inclusive relocation initiative, we aim to foster seven foundational elements encompassing sustainable, holistic, and affordable living. These pillars encompass low-cost housing, livelihood development, education. healthcare, reliable power, water accessibility, and sanitation facilities. Woven through these efforts is a commitment to personal development and training, empowering beneficiaries to seize their opportunities fully. Our ultimate aspiration is to inspire the replication of this model on a global scale, creating lasting positive change in communities worldwide. Values Injustice persists as peop18 endure lives in slums, battling ill health and premature mortality, At Home Leone, we believe in the Starfish principle, where each individual we assist signifies a meaningful change. Our goal is not only to offer immediate aid but to set an example, fostering lives worthy of emulation among our staff. We prioritize personal growth, aiming to cultivate integrity, empathy, and understanding among beneficiaries, supporters, participants, and staff. Sustainability remains at the core Of our endeavours, ensuring that every action taken endures, benefiting communities for the long term. We operate with utmost transparency, being accountable to all stakeholders for our strategies, finances, methodologies, and the impact we achieve. Our ethos draws inspiration from the story of the little boy on the beach, tirelessly throwing starfish back into the sea. Despite the overwhelming odds, we know that every effort counts. We strive, like the boy, to transform lives one by one. Through countless small acts of kindness, we aim to alleviate the suffering of those in some of the world's most impoverished regions, believing that these actions collectively create a substantial and impactful difference. Purpose The charity's purpose and aims are set out in it's Objects included in the Company's Memorandum of Association being.. (a) The relief of poverty, SlGkness and distress throughout the world. Home Leone Limitod (b) The promotion for the benefit of the public of urban or rural regeneration in areas of social and economic deprivation (and in particular in Africa) by all or any of the following means.. the provision of housing for those who are in conditions of need and the improvement of housing in the public sector or in charitable ownership provided that such power shall not extend to relieving any local authorities or other bodies of a statutory duty to provide or improve housing., the relief of financial hardship., the relief of unemployment,. the advancement of education, training or retraining, particularly among unemployed people, and providing unemployed people with work experience., the provision of financial assistance, technical assistance or business advice or consultancy in order to provide training and employment charitable need through help., in setting up their own businesses or develop current ones,, the creation of training and employment opportunities by the provision of workspace, buildings, andlor land for use on favourable terms. the maintenance, improvement or provision of public amenities; the provision of recreational facilities for the public at large or those who by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances, have need of such facilities., the protection or conservation of the environment,. the provision of public health facilities,. such other means as may from time to time be determined subject to the prior written consent of the Charity Commissioners for England and Wales. (iv) (v) (vi) (vii) (ix) (x) (xi) (c) Other such charitable purposes that are not within paragraphs (a) and (b) but are recognised as charitable purposes and may reasonably be regarded as analogous to, or within the spirit of, any purposes falling within either paragraph (a) and (b). How our work delivers our aims The past year has been marked by the continued methodiGal delivery of essential infrastructure and construction projects, all pivotal to our community-building efforts. Despite these achievements, the Charity's pace of growth has been restricted by reduced income. That said, education has seen rapid progress with over 400 children in Destiny Grace Academy. Key milestones have been achieved: Engaging in ongoing dialogues with government officials, international business representatives, and global development communities to advocate our vision and the effective solutions being implemented to combat the dire conditions of slum living, Delivering a relocation strategy and conceptualising a prototype village layout, encompassing the seven fundamental pillars outlined above. Destiny Village, now home to over 300 residents, aims to accommodate the relocation of more than 2,000 individuals. Inaugurating pre-primary, primary and secondary schools, presently catering to over 400 students from nursery to year 9. The Charity has 12 classrooms, with 5 more under construction. This includes the first two for year 10 which will concentrate on vocational training. Accomplishing the construction of 70 low-cost homes, eight warehouses, numerous stores and shops, a connecting bridge from the village to the road, and engineering a water system connecting to the underlying aquifer. This system serves the entire village and neighbouring communities. Home Leone Limited Our medical facility, the "Clinic in a Can,, hosted both local clinics and international medical practitioners and developed our triage and pathway service. We are now funded to build a village medical facility which will address mother and baby, dentistry and pharmaceutical needs for the wider population of around 5,000 people. A solar farm comprising 200 panels has been installed and operated with the assistance of overseas partners. We've established a brick-making factory. water-bagging factory, wood and metal fabrication and construction operations. Sustaining corporate, university, and community partnerships, welcoming numerous groups to Sierra Leone. Participants have reported invaluable learning experiences, and we anticipate expanding these engagements in the years ahead. The year presented significant challenges. Progress has been restricted due to the behaviour of some of the residents and institutional obstacles, which are being addressed at the time of writing this r&port. Once resolved, we are looking forward to continuing the exciting developments that are planned. Principal areas of work Home Leone's work is primarily based in Sierra Leone. We have support offices in thE) USA and UK. Financial Review Principal funding sources To ensure the sustainability of our organisation amidst these unprecedented challenges, our directors implemented prudent cost-cutting measures and other strategic actions, Our funding primarily stemmed from various individuals and foundations, crucial for supporting infrastructure development and sustaining our operations. Additionally, the invaluable contributions of senior leaders who volunteered their services have been instrumental. We express our heartfelt gratitude to each individual who has played a role in realising our vision. In the previous fiscal year, our external construction endeavours, enhanced and accounted for 30 % of our turnover. The weakness in the Sierra Leonean economy meant demand for services declined. In the aftermatn QT tiie P¢inuemiL, Lorporc)le &+uLl¢il re&4puiiblL)illLy prugriaifib Lurl¢)Iled Ir¢ivel, resulting in limited team contributions again this year. Nonetheless, we had the privilege of collaborating with two teams, one of which made a substantial dental and educational contribution. Our charity persists in its commitment to being efficiently managed. ensuring that donor contributions represent excellent value for their investment. Investment policy Home Leone prioritises the utilization of its donation incorne to swiftly progress toward its objectives, aligning spending with logistical feasibility. Any surplus funds are prudently managed by placing them on deposit, seeking the most favourable interest rates attainable in the market, while ensuring the security of these funds remains paramount. Home Leone Limited Reserves policy Home Leone has a policy to hold 2 month5 unrestricted expenditure in reserve. This remains a challenge as the desire to press on with the opportunities to assist the world's poorést calls for greater resources. This is consistently monitored, and the charity continues to seek resources to fulfil its desired policy. Plans for Future Periods We persist in our pursuit of transfomative funding capable of making a substantial difference for the Sierra Leonean impoverished communities. Our aim is to secure significant funding for a multitude of essential elements-more homes, thriving businesses, enhanced sports and health facilities, and additional classrooms. Moreover, we seek financial support for sustaining the operational costs of schools and healthcare until the village enterprises mclture enough to be self-sustaining. We've introduced several innovative designs, commencing the completion of our inaugural two-story house. Additionally, the expansion of our education facilities, which will have 17 classrooms by the end of 2024 provides more amazing opportunities for young people. In particular, we are developing a vocational training school with a focus on construction, personal vaSues, electrical installation and plumbing. Village governance was set back this year with a number of residents behaving in challenging ways. We continue to work hard to resolve these issues. The trustees extend heartfelt gratitude to our dedicated staff and residents, recognising their significant contribution5 and sacrifices in driving forward a vision of profound importance, Our staff members, ordinary individuals performing extraordinary feats in challenging environments, continue to inspire us with their unwavering commitment. Structure, Governance and Management Governing document The organisation is a company limited by guarant@e, incorporated on 2 April 2014 and registered as a charity on 12 August 2014. Thg company was establishod under a Memorandum of Association which established its objects and powers. In the event of the company being wound up its members are required to contribute an amount not exceeding £1. On 26 April 2019, an updated Memorandum and Articles was adopted. following a review of operations and plans. Recruitment and appointment of directors The directors set the course and have established the organisation priorities. Now it has a firm foundation and is set for major growth and delivery. We aim to appoint additional trustee5, Wlth appropriate skill and contributions in the forthcoming financial year. Strategy and policies Home Leone has drawn up and adopted a set of policies appropriate for an organisation of its size and reach. The governance and key policies are considered appropriate for the current size and purpose. The strategy and plans are clear based on an organic business plan. Management accounts are drawn up on a regular basis. Budgetary information is regularly Home Leone Limited updated as model village actual costs are compared to forecast, in an environment facing significant inflation and exchange rate fluctuations. Risk management The trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to mitigate these risks. Detailed risk assessments are also in place for each or the charity's operational locations and cover all aspects relating to volunteers travelling with the organisation. Statement of trustees. responsibilities The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. The law applicable to charities in England and Wales, the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008 require the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to,, select suitable accounting policies and then apply them consistently; observe the methods and principle8 in that Charity SORP; make judgements and estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unle8S it 18 inappropriate to presume that the charity will continue in busines8. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charty and to enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. They a￿ also responsible for safeguarding the assets of the charty and hence for taking reasonable Steps for the prevention and detection of fraud and other irregularities. Stat•m•nt a• to Di8closur• of Information to Ind•pend•nt Examinorn So far as the trustees are aware, there is no relevant infomiation (as defined by Section 418 of the Companies Act 21)06) of which the charitable company's independent examiners are unaware, and each trustee has taken all the steps that they ought to have taken as a trustee in order to make them aware of any information and to establish thal the charitable company's independent examiners are aware of the information. Independent Examiners AJ Bennewith Limited, the Chaiity's Independent Examiners will be proposed to stay in post for the 2024125 financial year. Approved by the Trustees and signed on their behalf by Nlgel Hyde 27 July 2024 Home Leone Limited Independent Examiner's Report to the Trustees of Home Leone Limited I report to the charity trustees on my examination of the accounts of the Home Leone Limited (the charity) for the year ended 30 April 2024. Responsibilities and basis of report As the trustees of the charity, you are responsible for the preparatiLin of the accounts in accordance with the requirements of the Charities AGt 2011 ('the Act,). I report in respect of my examination of the charities accounts carried out under section 145 of the Act and in carrying out my examination I have fo51owed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. Independent examiner's statement Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that l am qualified to undertake the examination because l am a registered member of Institute of Chartered Accountants of England and Wales which is one of the listed bodies I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect., accounting records were not kept in respect of the charity as required by section 130 of the Act; or the accounts do not accord with those records,. or the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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. 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 accounts to be reached. A J Bennewith FCA, FCPA, FFA, FFTA, FIPA, DChA, FRSA Institute of Chartered Accountants of England and Wales 18 Farnham Road, Guildford, GU14XA 27 July 2024 Home Leone Limited Statement of Financial Activities for the period 1 May 2023 to 30 April 2024 Incoming resources Unrestricted Restricted Total Funds Total Funds Funds 2024 Funds 2024 2023 2024 Notes Voluntary Income Sponsorships and donations Gifts in kind Internally generated income Investment income 161,202 127,005 288,207 373,197 12,069 12,069 45,272 85,954 85,954 175,967 173 Total incoming resources 259,231 127,005 386,236 594,609 Resources expended Cost of generating voluntary income Charitable activity Governance activity 9,931 9,931 9,415 247,809 10,145 131,631 379,440 10,145 645,929 6,854 Total resources expended 267,885 131,631 399,516 662,198 Net incomingl(outgoing) resources before transfers (8,654) {4,626) (13,280) (67,589) Transfers between funds 3,000 (3,000) Total fund3 brought forward 15 707,719 75,377 783,096 850,685 Total funds carried forward 15 702,065 67,751 769,816 783,096 Revaluatlon Reserve 793,196 Total Funds 1,563,012 783,096 All gains and losses in the year are included above. The Statement of Financial Activities also complies with the requirements for an Income and Expenditure Account under the Companies Act 2006. The notes on pages 12 to 19 form part of these financial statements Home Leone Limited Balance Sheet at 30 April 2024 2024 2024 2023 2023 Not8S Tangible assets 1,642,021 948,038 Current assets Work in Progress Stock Debtors Cash at bank and in hand 41,091 7,493 22,476 9,997 3,262 15,118 45,418 10 11 124,409 73,795 Creditors.. amounts falling due within one year 12 (120,234) (99,081) Not currnnt assetsl {Ilabilltles) 4,175 (25,286) Creditors: amounts falling due in more than one year 13 (83,184) (139,656) 1663 012 783 096 Roserve8 Unrestricted funds Restricted funds Revaluation Reserve 15 15 15 702,065 67,751 793 196 1563 012 707,719 75,377 783 096 The charitable cornpany is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 April 2024. The members have not required the charitable company to obtain an audit of its financial statements for the year ended 30 April 2024 in accordance with Section 476 of the Companies Act 2006.The trustees acknowledge their responsibilities for: (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006. and (b) preparing financial statements which give a true and fair view of the state of affairs of th8 charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherrtise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies. The financial statements were approved by the Board of Trustees on 27 July 2024 and were signed on its behalf by: Nigel Hyde The notes on pages 12 to 19 fomi part of these financial statements 10 Home Leone Limited Statement of Cash Flows for the Year Ended 30 April 2024 Cash Flows from Operating Activities Note 2024 2023 Net (Outgoing)Ilncoming Resources (13,280) (67,589) Adjustments for: Depreciation of Fixed assets GainslLosses in Disposal of Fixed Assets Decreasellncrease in WIP and other current assets Decreasellncrease in Stocks Decreaselincrease in Debtors Increase/Decrease in Creditors falling due in less than one year IncreaselDecrease in Creditors falling due in more than one year 68,765 58,558 (31,094) (4,231) (7,358) 21,153 70,640 56,880 5,372 101,280 (11fJ,427) 10 12 13 Net Cash from Operating Activities Cash Flows From Investing Activities Purchase of Tangible Fixed assets (28,110) (74,320) Net Cash from Investing Activities Cash Flows From Financing Activities Net increasel (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 7,932 (26,033) Cash and Cash Equivalents comprise Cash at Bank and in Hand The notes on pages 12 to 19 form part of these financial statements 11 Home Leone Limited Notes Forming Part of the Financial Statements for the year ended 30 April 2024 1. Principal accounting policies Basis of preparation of accounts The financial statements of the charity, which is a public benefit entity under FRS 102, are to be prepared in accordance with the Charities SORP {FRS 102) '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) {effeGtive 1 January 2015),, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, EFA, and the Charities Act 2011. The financial statements have been prepared und8r the historical cost convention. Incoming resources All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income from donations and grants is included in incoming resources when receivable, except as follows: When donors specify that donations and grants given to the charity must be used in future accounting periods, the income is deferred until those periods. When donors impose conditions, which have to be fulfilled before the charity becomes entitled to use such income, the incorne is deferred and not included in incoming resources until the pre-conditions for use have been met. When sponsorship or donations are given in respect of a trip arising in a future accounting period the income is deferred until the trip occurs. A core pillar of Home Leone's vision is to build enterprises to enable the village to create livelihood opportunities and employment. Income from these activities Is recognised on the date ot sale. Resource expended Resources expended are included in the Statement of Financial Activities on an accrual basis, inclusive of any VAT, which, as a charity, cannot be recovered. All expenditure is directly allrlbutable lo the uiie aGllvlty undertaken by the Ghcirlty. Cost of generating voluntary income Thèse include those costs incurred with third parties in the UK who promote fund raising, including events. Governance activity These represent costs incurred in managing the charity, its organisational administration and compliance with constitutional and statutory requirements. Gifts in kind The gifts will be recorded at market value at the time of rèceipt, unless otherwise specified. Where the market value is difficult to ascertain they will be recorded at the cost of the item to the donor; 12 Home Leone Limited or in the case of goods that are expected to be sold, the estimated resale value after deducting the cost to sell the goods. In the case of donated services the value will be the replacement cost of that service, the amount that the Charity would pay in the open market for an alternative item that would provide a benefit to the charity equivalent to the donated item. If it is impractical to measure the fair value of goods donated for resale or if the costs of valuation outweigh the benefit to users of the accounts, the donated goods will be recognised when they are sold. The fair value of a gift will be reduced by the cost of: Removing any restriction before the asset can be used or sold. Any distribution costs, if the goods are to be distributed freely. The contribution of general volunteers is not be recorded in the accounts. Tangible fixed assets Assets intended for continuing use by the charity are capitalised provided their cost exceeds £1,000. The net book value shown at the balance sheet dates are stated at cost less depreciation and provision for impairment in value. Depreciation is provided on tangible fixed assets at the following rates per annum so as to write off each asset over its estimated useful worl