**Charity registration number 1163037**
**Company registration number 08733254 (England and Wales)**
## **THE MWEZI FOUNDATION**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022**
## **THE MWEZI FOUNDATION**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
## **Trustees**
M Hamblin C Paye G Coltman (Appointed 1 November 2022) S Dawson-Coltman (Appointed 1 November 2022) W Durigan (Appointed 1 November 2022)
**Secretary** C Paye **Charity number** 1163037 **Company number** 08733254 **Principal address** 12 Vicarage Road Henley-On-Thames Oxfordshire United Kingdom RG9 1HJ **Registered office** 12 Vicarage Road Henley-On-Thames Oxfordshire United Kingdom RG9 1HJ **Independent examiner** Mr Mark Jackson FCA DChA Ruthlyn House 90 Lincoln Road Peterborough Cambridgeshire United Kingdom PE1 2SP **Bankers** Lloyds Bank 15 Blackheath Village Blackheath London United Kingdom SE3 9LH
## **THE MWEZI FOUNDATION**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 11|
## **THE MWEZI FOUNDATION**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 OCTOBER 2022**_
The trustees present their annual report and financial statements for the year ended 31 October 2022.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.
## **Objectives and activities**
The charity's objects were changed by Special Resolution dated 19 October 2021 to the following:
1. To relieve poverty through donating or otherwise facilitating the provision of solar energy to those in need in Kenya or anywhere else in the world that the trustees decide.
2. To advance the education of the public in matters relating to solar energy, climate change and the protection of the environment and to carry out and disseminate the results of research into all aspects of energy generation, distribution, supply and use.
3. To advance education by making grants for the payment of educational fees and the associated costs of attending educational establishments.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
## **Financial review**
This was the eighth full year of the charity’s activities. During this year the charity continued its work in the production and free distribution of solar lights, as well as in the granting of educational scholarships.
Our redesigned solar light casing went into production at the beginning of the year and the first 2,000 casings were delivered to our workshop in Likoni, Mombasa. A further 2,000 casings were produced later in the year for shipment during next year.
We continued to receive generous financial donations from individual donors and charitable trust funds during this year, which have enabled the Trustees to expand the number of schools that we support. At the end of this year we were supporting 157 schools with solar lights to enable their students living off-grid to study during the hours of darkness. Within those schools we maintain and repair the donated lights and monitor student performance.
One of the Trustees travelled to Kenya during the year, to monitor activity at the charity’s workshop in Likoni and to visit some of the schools being supplied with solar lights.
During the year, we continued to roll out our program of Mwezi Foundation scholarships and were supporting 5 students through their secondary school education by paying their school fees and ancillary costs thanks to the support of individual sponsors.
The charity’s bankers are now Lloyds Bank.
During the year the charity raised £32,302 in donations and other income.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
- 1 -
THE MWEZI FOUNDATION
TRUSTEEV REPORT (INCLUDING DIRECTORS, REPORT) {CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
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## **THE MWEZI FOUNDATION**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE MWEZI FOUNDATION**
I report to the trustees on my examination of the financial statements of The Mwezi Foundation (the charity) for the year ended 31 October 2022.
## **Responsibilities and basis of report**
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 financial statements to be reached.
## **Azets**
Ruthlyn House 90 Lincoln Road Peterborough Cambridgeshire PE1 2SP United Kingdom
Dated: 26 July 2023
- 3 -
## **THE MWEZI FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 OCTOBER 2022**_
|**Unrestricted**
**Restricted**
**Total Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**funds**
**2022**
**2022**
**2022**
**2021**
**2021**
**Notes**
**£**
**£**
**£**
**£**
**£**
**Income from:**
Donations and legacies
**3**
9,495
22,807
32,302
43,948
-
Investments
**4**
1
-
1
1
-
**Total income**
9,496
22,807
32,303
43,949
-
**Expenditure on:**
Charitable activities
**5**
25,522
25,810
51,332
28,443
2,783
**Net (expenditure)/income for**
**the year/**
**Net movement in funds**
(16,026)
(3,003)
(19,029)
15,506
(2,783)
Fund balances at 1 November
2021
44,030
5,206
49,236
28,524
7,989
**Fund balances at 31 October**
**2022**
28,004
2,203
30,207
44,030
5,206|**Total**
**2021**
**£**
43,948
1|
|---|---|
||43,949|
||31,226|
||12,723
36,513|
||49,236|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 4 -
THE MWEZI FOUNDATION
BALANCE SHEET
AS AT31 OCTOBER 2022
2022
10
11
4.70)
149
49.587
at b•nk •ThJ in na
.747
49.746
redllov#: amounts lalllNJ du• wllhln
on•
12
15•J)
(5101
30,3)7
49.236
Restrictsy fvJnd8
13
1203
44.030
30207
49.236
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20C6. fcf th• yaw8nd 31 OLtkn 2022.
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¥Ath Tospad to arrUnting rBDJrds aTrJ the prepatalI offfftancAal Sts¢ts.
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•m7rdp with 478.
to lh• sm811 ¢(xnp8nl88 rwjima.
Tru¥ts
## **THE MWEZI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 OCTOBER 2022**_
## **1 Accounting policies**
## **Charity information**
The Mwezi Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 12 Vicarage Road, Henley-On-Thames, Oxfordshire, RG9 1HJ, United Kingdom.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
- 6 -
## **THE MWEZI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2022**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and included audit fees and costs linked to the strategic management of the charity.
Costs are allocated, where possible, directly to the activity. Where the cost is not directly attributable it is allocated by informed management's best estimate of the activities undertaken.
## **1.6 Stocks**
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
## **1.7 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.8 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
- 7 -
## **THE MWEZI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2022**_
## **1 Accounting policies**
**(Continued)**
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Donations and gifts
9,495
22,807
**For the year ended 31 October 2021**
43,948
-|**Total**
**2022**
**£**
32,302|Total
**2021**
£
43,948|
|---|---|---|
|||43,948|
## **4 Investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2022**|2021|
||**£**|£|
|Interest receivable|1|1|
- 8 -
## **THE MWEZI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 OCTOBER 2022**_
## **5 Charitable activities**
|**Provision of**
**lighting**
**School**
**scholarship**
**fees**
**£**
**£**
Provision of lighting
3,003
-
Bank charges
323
-
Subcontractors
9,619
-
Components
27,677
-
Freight and transport costs
6,236
-
Permits and duties
-
-
Rent
914
-
Miscellaneous expenditure
-
-
Professional service
900
-
Scholarship fees
-
2,120
48,672
2,120
Share of governance costs (see note 6)
540
-
49,212
2,120
**Analysis by fund**
Unrestricted funds
25,012
510
Restricted funds
24,200
1,610
49,212
2,120|**Total**
**2022**
**£**
3,003
323
9,619
27,677
6,236
-
914
-
900
2,120
50,792
540
51,332
25,522
25,810
51,332|**Total**
**2021**
**£**
2,783
158
7,588
9,840
8,354
168
805
820
200
-|
|---|---|---|
|||30,716
510|
|||31,226|
|||28,443
2,783|
|||31,226|
## **6 Support costs**
|**Support costs**|||
|---|---|---|
|**Governance**
**costs**
**£**
Accountancy
540
540|**2022**
**£**
540
540|**2021**
**£**
510|
|||510|
## **7 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the year, and none of them were reimbursed travelling expenses.
- 9 -
## **THE MWEZI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2022**_
## **8 Employees**
The average monthly number of employees during the year was:
||The average monthly number of employees during the year was:|||
|---|---|---|---|
|||**2022**|**2021**|
|||**Number**|**Number**|
||Total|-|-|
||There were no employees whose annual remuneration was more than £60,000.|||
|**9**|**Financial instruments**|**2022**|**2021**|
|||**£**|**£**|
||**Carrying amount of financial assets**|||
||Debt instruments measured at amortised cost|149|149|
||**Carrying amount of financial liabilities**|||
||Measured at amortised cost|540|510|
|**10**|**Stocks**|||
|||**2022**|**2021**|
|||**£**|**£**|
||Raw materials and consumables|4,700|-|
|**11**|**Debtors**|||
|||**2022**|**2021**|
||**Amounts falling due within one year:**|**£**|**£**|
||Other debtors|149|149|
|**12**|**Creditors: amounts falling due within one year**|||
|||**2022**|**2021**|
|||**£**|**£**|
||Accruals and deferred income|540|510|
- 10 -
## **THE MWEZI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2022**_
## **13 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|||||**Movement in funds**|**Movement in funds**||
|---|---|---|---|---|---|---|
||**Balance at**|**Resources**|**Balance at**|**Incoming**|**Resources**|**Balance at**|
||**1 November**|**expended**|**1 November**|**resources**|**expended**|**31 October**|
||**2020**||**2021**|||**2022**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|The Waterloo Foundation|7,989|(2,783)|5,206|-|(3,003)|2,203|
|School Scholarships|-|-|-|1,610|(1,610)|-|
|BFSS|-|-|-|10,003|(10,003)|-|
|Last-mile project|-|-|-|11,194|(11,194)|-|
||7,989|(2,783)|5,206|22,807|(25,810)|2,203|
The Waterloo Foundation grant is to support the development of our maintenance and operation strategy.
During the year, the foundation amended its charitable objectived to include making grants for the payment of educational fees. These are partly funded by sponsorship donations.
During the year the foundation received a grant from BFSS for the provision of portable solar lights for 150 Kenyan primary schools.
The last-mile project relates to grants received for the provision of 1,200 portable solar lights, spread between 100 primary schools in rural Kenyan villages.
## **14 Analysis of net assets between funds**
|**Analysis of net assets between funds**|||
|---|---|---|
|**Unrestricted**
**funds**
**Restricted**
**funds**
**2022**
**2022**
**£**
**£**
Fund balances at 31
October 2022 are
represented by:
Current assets/(liabilities)
28,004
2,203
28,004
2,203|**Total**
Unrestricted
funds
Restricted
funds
**2022**
2021
2021
**£**
£
£
30,207
44,030
5,206
30,207
44,030
5,206|Total
2021
£
49,236|
|||49,236|
## **15 Related party transactions**
There were no disclosable related party transactions during the year (2021 - none).
- 11 -