## Chifundo UK
## (a Charitable Incorporated Organisation)
## Trustees Report and
## Financial Statements
## for the period
1 January 2021 to 31 December 2021
## Registered charity: 1160791
Page **1** of **11**
## **Table of Contents**
Report of the Trustees ........................................................................................................ 3 Independent Examiner’s Report on the Accounts .............................................................. 7 Statement of Financial Activities for the year ended 31 Dec 2021 .................................... 8 Statement of Assets and Liabilities at 31 December 2021 ................................................. 9 Notes to the Financial Statements for the year ended 31 Dec 2021 ................................ 10
Page **2** of **11**
## **Report of the Trustees**
The trustees of Chifundo UK present their annual report and accounts for the period 1 January 2021 to 31 December 2021 and confirm that they comply with the requirements of the Charities Act 2011, Chifundo UK’s constitution as a Charitable Incorporated Organisation, and the charities SORP 2005. The trustees also confirm that section 4 (the public benefit requirement) of the Charities Act 2011 has been complied with.
## **Legal and administrative information**
**Name** Chifundo UK **Charity number** 1160791 **Charity address** 1 St Christophers Close Upton Chester CH2 1EJ
## **Trustees**
Trustees serving during this period and their positions held were as follows:
Susan Flynn, Chair Lynn Walton, Treasurer Jean Gorman, Secretary Gloria Morrison Derrie Lizi Princy Johnson
## **Independent Examiner**
David Lewis F.C.A.
## **Structure, governance and management**
## **Governing Documents**
Chifundo UK is a Charitable Incorporated Organisation (CIO) with a Constitution founded on 20 November 2014. Chifundo UK was entered on the Register of Charities of England and Wales on 9 March 2015. The financial statements comply with the current statutory requirements of the Charities Act 2011.
## **Trustee Recruitment, Induction and Training**
Trustees are encouraged to attend external training events and to read the relevant literature provided by the Charity Commission.
## **Organisation**
The charity trustees shall manage the affairs of the CIO and may, for that purpose, exercise all the powers of the CIO. The membership of the CIO is its trustees.
The trustees met seven times virtually via ZOOM during 2021, five times for meetings and twice for workshops.
Page **3** of **11**
## **Objectives and Activities**
The objectives of the CIO are:
- To relieve financial hardship of girls and women in Malawi by provision of technical or tertiary education
To further these objectives the activities for the year 2021 were:
- Raising awareness and money through sales of products, appeals and by providing information
- Selling ethical products made in Malawi through events and on-line
- Selling ethical goods made by sewing group volunteers in the UK through events and on-line
- • Obtaining orders in the UK and Malawi from large organisations for products to be made by Chanasa Women
- Organising the making of Lotus Packs of reusable sanitary pads and bags for girls in Government funded schools in Malawi alongside training in Menstrual Health, teaching mothers to make pads to start small business and the full Lotus Project with WASH facilities
- Funding women to attend tailoring courses in Malawi.
- Buying and maintaining equipment.
- Funding the rent of premises for each group in which to work
- Funding the employment of a part time coordinator, a part time support worker and a Marketing and Communications Internship in Malawi.
- Funded initial research into establishing a new small business venture to provide a consistent funding stream in Malawi, drafting an overview and start-up costings
- Produced a newsletter
## **Achievements and performance**
## **HIGHLIGHTS**
Highlights from 2021 include:
- A successful Craft Fair in November
- The production and distribution with menstrual health training of 500 Lotus Packs for school girls at 3 government funded schools in Malawi.
- £525 raised to enable a Nursing Student in Malawi to pay her fees and continue with her course.
- Four significant grants have been received with a value of £10,000
- Susan Flynn (chair and founder) was awarded University of Manchester's Volunteer of the Year Award in the alumni category.
## **SUPPORT FOR CHANASA MALAWI**
- 6 Chanasa women’s groups in four different locations in Blantyre’s poor suburbs now have rented premises. This gives them more independence and a more appropriate environment in which to work. A total of 59 women are involved together with a part time Coordinator and a part time Support Worker.
- A one-year Marketing and Communications Intern has been appointed.
Page **4** of **11**
- Four industrial sewing machines have been purchased one for each sewing room.
## **LOTUS PROJECT**
Work was completed for the Lotus Project at Ntenjera School (129 girls), Chisawani School (260 girls) and Mudi School (121 girls). The girls together with mothers, boys and staff were trained at each. Mothers groups at each school were trained to make sanitary pads and provided with equipment and materials. In addition, the mothers groups at all the schools which have had the Lotus Project since 2019 have had a business training session and three schools have received treadle sewing machines, this is to help them set up making pads as a small business. We now have sufficient funds to begin the Lotus Project at a large school of over 2,000 girls in a poor suburb of Blantyre. At the end of 2021 the sewing groups began making the first 600 packs ready for distribution and training in 2022.
## **SEWING GROUP**
The sewing group has met in person and has continued to make products many of which were sold at the Craft Fair as we now have very few products from Malawi and it is proving too expensive to have them sent here.
## **WOMEN MAKING A DIFFERENCE**
Two zoom meetings have been held with one on World Women’s Day in March and the other in December.
## **FUNDRAISING AND SALES IN THE UK**
Chifundo UK continues to be a member of BAFTS (The British Association of Fair Trade Shops and Suppliers). A coffee morning with flower arranging workshop was held in August at Hoole URC church which was well received and successful. A sales table with refreshments was held at St
Columbas Church after mass in October and was less successful that previously. The annual Craft Fair at Hoole URC church in November was very successful with a total of 20 stalls and raised over £800.
## **Financial review**
## **Overview**
Total income for this period was £22,674 (£27,342 in 2020). £12,249 was raised for the Lotus Project including grants from the Souter Trust, the Pignatelli Foundation, the Farthing Trust and the Eleanor Rathbone Trust. In the second half of the year we were able to begin to hold fund raising events again and held a successful coffee morning at Hoole URC Church, a sales table after Mass at St Columbas Church and a very successful Annual Craft Fair in November raining over £800 the work in Malawi. In 2020 money was raised through an appeal for help with COVID in Malawi and £10,724 was sent that year. In 2021 a smaller appeal was held on a very short time frame to raise the money to enable a Nursing student in Malawi to pay her course fees and continue with her course. £525 was sent to allow this to happen
Total expenditure for the period was £15,425 (£26,280 in 2020). The main difference between the two years being the COVID-19 appeal. Money was sent in 2021 to pay for tailoring courses. One lady successfully completed the one year Certificate course and 6 ladies completed the 3 month informal tailoring course. 60 women were given a £10 Christmas bonus each.
Page **5** of **11**
## **Reserves Policy**
Chifundo UK will hold reserves of at least £1,000 to act as a cushion against any shortfall in revenue and in order to continue to fulfil its charitable purposes.
## **Restricted Funds**
Charities have an obligation to account to donors of funds and the public in general that they are using monies entrusted to then for the purpose for which they are given. Chifundo UK received new restricted funds as detailed in Note 1 on page 11 below where the donor required that the money is spent on a particular purpose.
Page **6** of **11**
## **Independent Examiner’s Report on the Accounts**
I report on the accounts of the company for the period 1 January 2021 to 31 December 2010 which are set out on pages 9 to 12.
## **Respective responsibilities of trustees and examiner**
The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this period under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
It is my responsibility to:
- examine the accounts under section 145 of the Charities Act,
- to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the Charities 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 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 the 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 (other than that disclosed below)
1. which gives me reasonable cause to believe that in, any material respect, the requirements:
- to keep accounting records in accordance with section 130 of the Charities Act; and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act
- have not been met; or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
**Signed: Date: Name: David Lewis**
Relevant professional qualification(s) or body (if any): **F.C.A.**
Address: 39 Earlsway, Chester, CH4 8AY, United Kingdom.
Page **7** of **11**
## **Statement of Financial Activities for the year ended 31 December 2021**
|Notes
**Incoming Resources**
**Voluntary Income**
Donations with Gift Aid
Donations without Gift Aid
Lotus Project Donations with Gift Aid
1
Lotus Project Donations without Gift Aid
1
COVID Appeal Donations with Gift Aid
1
COVID Appeal Donations without Gift Aid 1
Nursing Student Appeal with Gift Aid
1
Nursing Student Appeal without Gift Aid
1
Small Donations with Gift Aid
2
Income Tax recovered
3
**Activities for Generating Funds**
Sales of Chanasa Products at Events
Sales of Chanasa Products to Shops
Sales of Chifundo Products
Internet Sales
Craft Fair
Postage charged
Other Fundraising
**Total Income**
**Resources Expended**
**Cost of Generating Funds**
Chanasa Products
Raw materials
Postage
Table Fees
**Course Fees in Malawi**
Beehive Tailoring School
**Grants to Chanasa**
Equipment Grants
Staff Salaries and Administration
Rent
Other grants
**COVID /Nursing Student Appeal**
Grants to Malawi COVID Appeal 2020
1
Grants to Malawi Nursing Appeal
1
**Lotus Project Costs**
Lotus Project
1
**Administration**
Website
Monthly bank account fees
Other Admin costs
Cost of Overseas payments
1
**Total Resources Expended**
**Net incoming / (outgoing) resources**
**Reconciliation of Funds**
Opening balance CAF account at 1 January
Opening balance PayPal account at 1 January
Net incoming / (outgoing) resources
CAF Bank Current account at 31 December
PayPal Account at 31 December|**2021**
**2021**
Unrestricted
Restricted
3,043
£
3,863
£
2,057
£
10,192
£
350
£
175
£
69
£
763
£
602
£
109
£
753
£
28
£
493
£
9
£
169
£
36
£
700
£
7,000
£
1,000
£
550
£
525
£
5,245
£
99
£
96
£
49
£
50
£
75
£|**21,114**
**£**
**1,561**
**£**
**22,675**
**£**
**36**
**£**
**700**
**£**
**8,550**
**£**
**525**
**£**
**5,245**
**£**
**369**
**£**
**15,425**
**£**
**7,250**
**£**
7,556
£
365
£
7,250
£
**15,171**
**£**
14,983
£
188
£
**15,171**
**£**|**2020**
Unrestricted
786
£
2,312
£
3
£
200
£
78
£
37
£
1,155
£
390
£
33
£
370
£
283
£
55
£
103
£
10
£
-
£
26
£
3,031
£
1,261
£
225
£
96
£
60
£
40
£
139
£|**2020**
Restricted
785
£
10,139
£
3,532
£
6,348
£
77
£
1,098
£
10,723
£
10,188
£
40
£|**25,280**
**£**
**2,063**
**£**
**27,343**
**£**
**451**
**£**
**-**
**£**
**4,543**
**£**
**10,723**
**£**
**10,188**
**£**
**375**
**£**
**26,280**
**£**
1,063
£
6,859
£
-
£
1,063
£
**7,922**
**£**
7,556
£
365
£
**7,921**
**£**|
|---|---|---|---|---|---|
Page 8 of 11
## **Statement of Assets and Liabilities at 31 December 2021**
|Notes
**Assets**
**Current Assets**
Cash at CAF Bank
Cash at PayPal
**Creditors**
Amounts falling due within a year
**Liabilities**
**All liabilities**
**Net Assets**
**Funds**
Unrestricted Funds
Restricted Funds - Lotus Project
Restricted Funds - Nursing Student Appeal
**Total Funds**|**2021**
**14,983**
**£**
**188**
**£**
-
£
-
£
4,562
£
10,546
£
63
£|**15,171**
**£**
**-**
**£**
**15,171**
**£**
**15,171**
**£**|**2020**
**7,556**
**£**
**365**
**£**
-
£
-
£
6,893
£
1,028
£
-
£|**£7,921**
**-**
**£**
**7,921**
**£**
**7,921**
**£**|
|---|---|---|---|---|
Page 9 of 11
## **Notes to the Financial Statements for the year ended 31 December 2021**
## **Note 1**
Restricted Funds are for the Lotus Project and the Nursing Student Appeal.
|**Lotus Project**
**Incoming Resources**
Balance from 2020
Donations with Gift Aid
Donations without Gift Aid excluding trusts
Soutar Trust
Pignatelli Foundation
Farthing Trust
Eleanor Rathbone Trust
Income tax recovered
**Outgoing Resources**
Lotus Project Costs
Bank charges foreign payment
**Net incoming / (outgoing) resources**
**Nursing Student Appeal**
**Incoming Resources**
Donations with Gift Aid
Donations without Gift Aid
Income tax recovered
**Outgoing Resources**
Grants to Malawi
Bank charges foreign payment
**Net incoming / (outgoing) resources**|1,028
£
2,057
£
2,192
£
2,500
£
2,500
£
3,000
£
2,000
£
514
£
5,245
£
50
£
350
£
175
£
88
£
525
£
25
£|**15,791**
**£**
**5,245**
**£**
**10,546**
**£**
**613**
**£**
**550**
**£**
**63**
**£**|
|---|---|---|
## **Note 2**
A claim for Gift Aid on Small Donations was made for the 12 month period to 5 April 2021.
## **Note 3**
Gift Aid on all other donations was claimed for the 12 month period to 30 November 2021.
Page 10 of 11
These accounts have been prepared using the Receipts and Payments method. As the gross income is below £25,000 there is no requirement from the Charity Commission to have the accounts independently examined or audited. However, the trustees have chosen to have the accounts independently examined.
Lynn Walton Treasurer Chifundo UK
Page **11** of **11**