## Chifundo UK
## (a Charitable Incorporated Organisation)
## Trustees Report and
## Financial Statements
## for the period
1 January 2022 to 31 December 2022
## 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 December 2022 .......................... 8 Statement of Assets and Liabilities at 31 December 2022 ................................................. 9 Notes to the Financial Statements for the year ended 31 December 2022 ..................... 10
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## **Report of the Trustees**
The trustees of Chifundo UK present their annual report and accounts for the period 1 January 2022 to 31 December 2022 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:
Lynn Walton, Treasurer Jean Gorman, Secretary Susan Flynn 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 four times virtually via ZOOM during 2022 and once in person during 2022.
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## **Aims and Activities**
The aims of the CIO are:
- Chifundo and Chanasa both mean Compassion which is the basis and motivation for what we do as a charity, both here in the UK and in Malawi. Chanasa is the sister charity in Malawi which Chifundo UK works with. Together we reach out to women who need support and empowerment through education and income generation so that they can fulfil their potential and make a difference for their families, communities and country. It is women mutually helping each other.
To further these aims, the activities for the year 2022 were:
- Raising awareness of the situation in Malawi and raising money through sales of products, appeals and by providing information on the work of Chanasa in Malawi
- Selling ethical products made by Chanasa in Malawi through events and online
- Selling ethical goods made by sewing group volunteers in the UK through events and online
- Obtaining orders in Malawi from large organisations for products to be made by Chanasa Women Sewing Groups
- 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 to enable the girls to attend school regularly. Teaching mothers’ groups at the schools to make pads to start small businesses
- Funding women to attend tailoring training courses in Malawi. 52 out of 57 women have now been trained
- Buying and maintaining sewing equipment e.g. sewing machines
- Funding the rent of premises for each group in which to work
- Funding the employment of a part time coordinator and a part time support worker in Malawi to support and organise the six sewing groups
## **Achievements and performance**
## **HIGHLIGHTS**
Highlights from 2022 include:
- A Craft Fair in November 2022 which was well attended and raised over £800
- A well-attended Coffee Morning in Chester and stalls at two new events, one in Ellesmere port and the other in Warrington
- Transport of a barrel of products made by the sewing groups from Malawi to the UK
- The production and distribution of Lotus Packs with menstrual health training for 1350 school girls at 2 government funded schools in Malawi.
- Significant generous donations were received
## **SUPPORT FOR CHANASA MALAWI**
- Six 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
Page **4** of **11**
in which to work. A total of 57 women are involved together with a part time Coordinator and a part time Support Worker.
- Nine women were funded to attend tailoring training courses in Malawi in 2022. There are 5 women who have not yet been able to attend a course. As new women join they may also need to be trained.
- Payments to the women in Malawi have been increased to help with the large rise in the cost of living in Malawi.
## **LOTUS PROJECT**
Work was completed for the Lotus Project at Mbayani School in Ndirandi (772 girls) and started at Nkolokoti School where 578 girls were trained up to the end of 2022 with another 250 to complete in 2023. The girls, together with mothers, boys and staff were trained at each. The mother’s group at Mbayani School were trained to make sanitary pads and provided with equipment and materials.
## **SEWING GROUP**
The UK sewing group has met twice in person and has continued to make products and to have ideas for new products.
## **WOMEN MAKING A DIFFERENCE**
Women Making a Difference have been updated via email, a Whatsapp group and meeting up while running stalls and events.
## **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 and craft workshops was held in September 2022 at Hoole URC Church which was well attended and successful. Stalls were run at URC area events in Warrington. The annual Craft Fair at Hoole URC church in November 2022 was very successful with a total of 18 stalls and raising over £800.
## **TRUSTEES**
Susan Flynn, the founder of Chifundo UK and Chanasa, is no longer running the day to day activities of Chifundo UK or Chanasa for health reasons. She is continuing to help in the background.
The trustees have continued to meet via ZOOM, in person on one occasion, and to meet up at events.
## **Financial review**
## **Overview**
Total income for this period was £14,720 (£22,674 in 2021).
£3,189 (£12,249 in 2021) was raised for the Lotus Project including a grant from the Farthing Trust. Only a couple of other grants were applied for in 2022 and these were not successful.
Some significant generous donations were received including donations given in memory at a funeral.
Total expenditure for the period was £17, 181 (£15,425 in 2021). £9,753 of this was for the Lotus Project being money that had been received in 2021.
Page **5** of **11**
The 58 women working for Chanasa in Malawi were each given a £5 bonus at Easter and a £15 bonus at Christmas.
The main difference in finances between 2021 and 2022 is that in 2021 significant grant money was received for the Lotus project which was then sent to Malawi in 2022. It is prudent to only send money to Malawi as it is required.
## **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 10 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 2022 to 31 December 2022 which are set out on pages 8 to 10.
## **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 2022**
|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
Nursing Student Appeal with Gift Aid
2
Nursing Student Appeal without Gift Aid
2
Small Donations with Gift Aid
3
Income Tax recovered
4
**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
**Other Income**
Interest
**Total Income**
**Resources Expended**
**Cost of Generating Funds**
Chanasa Products
Raw materials
Postage
Equipment to send to Malawi
**Course Fees in Malawi**
Beehive Tailoring School
**Grants to Chanasa**
Equipment Grants
Staff Salaries and Administration
Rent
Other grants
**Nursing Student Appeal**
Grants to Malawi Nursing Appeal
2
**Lotus Project Costs**
Lotus Project
**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
Closing balance CAF account at 31 December
Closing balance PayPal Account at 31 December|**2022**
**2022**
Unrestricted
Restricted
3,246
£
5,395
£
3,189
£
82
£
934
£
641
£
14
£
532
£
506
£
4
£
165
£
12
£
65
£
54
£
14
£
93
£
100
£
5,000
£
1,000
£
750
£
9,753
£
120
£
81
£
76
£
50
£
25
£|**12,846**
**£**
**1,862**
**£**
**12**
**£**
**14,720**
**£**
**226**
**£**
**-**
**£**
**6,850**
**£**
**-**
**£**
**9,753**
**£**
**352**
**£**
**17,181**
**£**
**2,461**
**-£**
14,983
£
188
£
2,461
-£
**12,710**
**£**
12,595
£
115
£
**12,710**
**£**|**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**
**£**
**22,674**
**£**
**36**
**£**
**700**
**£**
**8,550**
**£**
**525**
**£**
**5,245**
**£**
**369**
**£**
**15,425**
**£**
**7,250**
**£**
7,556
£
365
£
7,250
£
**15,171**
**£**
14,983
£
188
£
**15,171**
**£**|
|---|---|---|---|---|
Page 8 of 11
## **Statement of Assets and Liabilities at 31 December 2022**
|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
2
**Total Funds**|**2022**
12,595
£
115
£
-
£
-
£
8,753
£
3,957
£
-
£|**12,710**
**£**
**-**
**£**
**12,710**
**£**
**12,710**
**£**|**2021**
14,983
£
188
£
-
£
-
£
4,562
£
10,546
£
63
£|**£15,171**
**-**
**£**
**15,171**
**£**
**15,171**
**£**|
|---|---|---|---|---|
Page 9 of 11
## **Notes to the Financial Statements for the year ended 31 December 2022**
## **Note 1**
## **Lotus Project**
|**Incoming Resources**
Balance from 2021
Donations with Gift Aid
Donations without Gift Aid excluding trusts
Farthing Trust
Income tax recovered
**Outgoing Resources**
Lotus Project costs
Cost of overseas payments
**Net incoming / (outgoing) resources**|10,546
£
-
£
189
£
3,000
£
-
£
9,753
£
25
£|**13,735**
**£**
**9,778**
**£**
**3,957**
**£**|
|---|---|---|
## **Note 2**
## **Nursing Student Appeal**
The Trustees agreed on 4 April 2022 that the balance of £ 63 carried forward to this year 2022 should be transferred to unrestricted funds and used in the future to pay for tailoring courses.
## **Incoming Resources**
|Balance from 2021
Donations with Gift Aid
Donations without Gift Aid excluding trusts
Income tax recovered
**Outgoing Resources**
Transfer to unrestricted funds
Bank charges foreign payments
**Net incoming / (outgoing) resources**|63
£
-
£
-
£
-
£
63
£
-
£|**63**
**£**
**63**
**£**
**-**
**£**|
|---|---|---|
## **Note 3**
A claim for Gift Aid on Small Donations was made for the 12 month period to 5 April 2022.
## **Note 4**
Gift Aid on all other donations was claimed for the 12 month period to 18 November 2022.
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**