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2023-12-31-accounts

1

THE T.E.A PROJECT FINANCIAL STATEMENTS YEAR ENDED 31[st] DECEMBER 2023

Rahul Nagalingam Finance Officer 05/02/2024

The T.E.A. Project

Financial Statements 2023

Table of Contents

Notes to the Financial Statements.................................................................. 3 The T.E.A. Project Statement of Profit or Loss ................................................ 5 The T.E.A. Project Statement of Financial Position .......................................... 6 The T.E.A. Project Statements of Cash Flows .................................................. 7 Notes to the Financial Statements .................................................................. 8 Income and Expenses Qaurterly wise of the Year 2023 ................................ 13 Appendix 01 .................................................................................................. 16

Financial Statements 2023

The T.E.A. Project

3

The T.E.A. Project Notes to the Financial Statements

1. GENERAL

1.1 REPORTING ENTITY

1.1.1 Corporate Information

The T.E.A.Project (“the Organization ) is a Registered Charitable incorporated Organization in United Kingdom in 2018 and Registered INGO in Sri Lanka. The registered office of the

organization is at No.3 Pendlebrook, Lancashire, BB7 1GY United Kingdom and No.94/4, Galkanda Road, Aniwatta in Kandy. The Organization has been registered with the District Secretariat Kandy

1.1.2 Principal Activities and Nature of Operations

The principal activities of the Organization comprised of training, empowerment and awareness the children. The Principal activities of the organization in the year under review is advance personnel skills and abilities of vulnerable children by providing training and workshops

1.2 BASIS OF PREPARATION

1.2.1 Statement of compliance

The Financial Statements of the Company have been prepared in accordance with Sri Lanka Accounting Standards (SLFRSs and LKASs) promulgated by the Institute of Chartered Accountants of Sri Lanka (ICASL) and comply with the requirements of the Companies Act, No. 7 of 2007, and amendments there to.

1.2.2 FUNCTIONAL AND PRESENTATION CURRENCY

Items included in the financial statements of the company are measured using the currency of the primary economic environment in which the company operates (the functional currency). These financial statements are presented in Sri Lankan Rupees, the Company’s functional and

presentation currency. There was no change in the company’s presentation and functional currency during the year under review. All financial information has been rounded to the nearest Rupee unless otherwise specifically indicated.

Financial Statements 2023

The T.E.A. Project

4

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 Depreciation

Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset.

The estimated useful lives for the current year are as follows:

Motor vehicles 5 Years Computers and Printers 5Years Buildings 20 Years Tools and Equipment 5Years Furniture and Fittings 5Years

Depreciation methods, useful lives and residual values are reassessed at each reporting date and a

2.2 Foreign currency transactions

Sri Lankan rupee is the functional currency of the Organization. Transactions in foreign currencies are translated into the functional currency of the Company at the spot exchange rates at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the closing exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortized cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortized cost in foreign currency translated at the spot exchange rate at the end of the year.

Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated to the functional currency at the spot exchange rate at the date that the fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated using the spot exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are generally recognized in profit or loss.

Financial Statements 2023

The T.E.A. Project

5

The T.E.A. Project Statement of Profit or

Loss

The T.E.A. Project
Statement of Profit or
Loss
The T.E.A. Project
Statement of Profit or
Loss
The T.E.A. Project
Statement of Profit or
Loss
Year Ended 31st December 2023
Notes Sept
Rs
2,895,304.81
8,019,903.98
412,346.73
11,327,555.52
5,962,347.06
362,333.42
1,212,399.18
753,206.15
140,208.00
9,422.00
259,420.00
83,267.84
512.68
58,000.00
2,878,769.27
8,841,116.33
2,486,439.19
Sept
GBP
Income
Foreign Donations
3
Local Donations
4
Other Income
5
Total Income
EXPENSES
Administration and Establishment
6
Pre School
7
Food Programme
8
T.E.A.Center
9
Training and Empowerment Programme
10
Saturday Service
11
Volunteer Programme
12
Financial Expenses
13
Income tax
20
Professional Fees
21
TOTAL PROJECT EXPENSES
TOTAL EXPENSES
NET SURPLUS/ (DEFICIT)
7,107.11
19,686.46
1,012.19
27,805.76
14,635.78
-
889.42
2,976.08
1,848.90
344.17
23.13
636.80
204.40
6,922.89

21,558.66
6,247.09

Financial Statements 2023

The T.E.A. Project

6

The T.E.A. Project Statement of Financial Position

As at 31st December 2023

As at 31st December 2023
Notes RS
8,553,957.20
-
GBP
Assets
Non-Current Assets
Property Plant & Equipment
14
Long-Term Pledges Receivable
15
Subtotal Long-Term Assets
Intangible Assets
Investments (FD)
16
Current Assets
Inventories
17
Account Receivables
Gov't Grants and Contracts Receivables
18
Grant Receivable
Pledges Receivable
Cash and Cash Equivalents
19
Investments
Prepaid Expenses
Subtotal Current Assets
Total Assets
Equity & Liabilities
Liabilities
Current Liabilities
Account Payable
Notes (Loans) Payables
Unearned Revenue
EPF Payable
ETF Payable
Audit Fee
Subtotal Current Liabilities
Long-Term Liabilities
Mortgage Payable
Long-Term Loan
Subtotal Long-Term Liabilities
Total Liabilities
Equity
Net Assets Beginning of year
Change in Net Assets
Net Assets
Total Equity and Liabilities
20,997.40
-
8,553,957.20 20,997.40
-
-
-
7,436,343.59
-
-
-
-
-
-
-
-
18,254.00
-
-
7,436,343.59 18,254.00
15,990,300.79
-
-
30,400.00
52,485.00
(15,400.00)
39,251.40
-
-
-
74.62
128.83
(37.80)
67,485.00 165.66
-
-
-
-
- -
67,485.00
13,436,376.60
2,486,439.19
165.66
32,982.28
6,103.46
15,922,815.79 39,085.74
15,990,300.79 39,251.40

Financial Statements 2023

The T.E.A. Project

7

The T.E.A. Project Statements of Cash Flows

For the Year Ended 31st December 2023

2023
Rs
2023
GBP
CASH FLOW FROM OPERATING ACTIVITIES
Cash Receipt from Local Donors
Cash Receipt from Foreign Donors
Payments to the Suppliers
Payment to Employees
Increase of Accounts Payable
Net Cash Flow from Operating Activities
CASH FLOW FROM INVESTMENT ACTIVITIES
Additions to the Property Plant and Equipment
Net Cash Flow from Investment Activities
CASH FLOW FROM FINANCE ACTIVITIES
Interest Income
Interest Expenses and Bank Charges
Net Cash Flow from Finance Activities
Net increase or decrease in cash and cash equivalents
Cash and Cash Equivalent at the Begining of the Year
Cash and Cash Equivalent at the End of the Year
8,019,903.98
2,895,304.81
(11,808,275.59)
(4,167,748.00)
50,225.00
(5,010,589.80)
-
412,346.73
(83,267.84)
329,078.89
(4,681,510.91)
6,730,573.14
7,436,343.59
-
-
-
19,686.46
7,107.11
(28,985.78)
(10,230.57)
123.29
(12,299.50)
-
-
-
-
-
-
-
-
-
1,012.19
(204.40)
807.79
-
(11,491.71)
16,521.54
18,432.83

Financial Statements 2023

The T.E.A. Project

8

The T.E.A. Project

Notes to the Financial Statements

Year Ended 31st December 2023

Year Ended 31st December 2023
Dec
Rs
44,679
1,747,011
486,493
40,709
32,914
-
-
203,778
35,211
120,418
-
134,272
49,820
2,895,305
5,000,000
-
1,644,000
72,700
183,260
29,610
668,084
422,250
8,019,904
422,617
(10,270)
412,347
Dec
GBP
Note 03
Foreign Donations
FP Forrester
FP Givey Stripe Payments
FP MERRY HENRY EVENTS Wheatshe
FP Racheal and Carl D Ellis
FP TEA MARCHANT MARCHANT K
FP Tea Project K Storebo
Kate Merchant
Pay Pal
FP Smaya Soul Decemble Alice
FP STMHALL SHAZIA TARANNUM S
FP Julienne James J L
FP Donation Haines Leonie
Other Donations
109.67
4,288.39
1,194.19
99.93
80.79
-
-
500.21
86.43
295.59
-
329.60
122.29
7,107
Note 04
Local Donations
Hiradramani International Expor
Peter Simon
Ewen
Volunteer Accommodation
Raffle Draw Fund Raising Event
Till Box Collection
Other Donation
Donations -Other
Note 05
Other Income
Interest Income
Exchange Gain/ (Loss)
12,273.50
-
4,035.53
178.46
449.85
72.68
1,639.95
1,036.50
19,686
1,037.40
(25.21)
1,012

Note: This Exchange loss arises due to highly fluctuations of GBP vs LKS. But this loss does not realise untill GBP converts in to Sri Lankan Rupees

Financial Statements 2023

The T.E.A. Project

9

The T.E.A. Project

Notes to the Financial Statements Year Ended 31st December 2023

The T.E.A. Project
Notes to the Financial Statements
Year Ended 31st December 2023
Dec
Rs
-
137,898
59,878
274,000
36,540
20,450
40,554
42,105
122,953
10,770
8,600
135,836
4,180
145,617
89,620
1,100
3,500
3,252,190
393,392
204,499
87,119
94,120
797,427
5,962,347
33,463
24,250
-
-
82,770
-
198,320
4,500
8,430
600
10,000
362,333
Dec
GBP
Note 06
Administration and Establishment
Advertising & Promotion
Donations
Electricity
EPF 12%
ETF 3%
Fundraising
Bills
Membership Fee
Special Events
Food and Beverages
Tools & Equipment’s
License and Insurance
Office Maintenance
Software
Training and Development
Postage and Delivery
other
Salaries
Stationery
Travelling
Telephone and Internet
Tea Scooter Maintenance
Asset Depreciation
Total Office Expense
Note 07
Pre School
Stationary
Training and Development
Teachers Allowances
Workshop Materials
Special Events
Telephone
Foods for Kids
Travelling
Donation
Teaching Materials
Events and Ceremonies
-
338.50
146.98
672.59
89.69
50.20
99.55
103.36
301.81
26.44
21.11
333.44
10.26
357.45
219.99
2.70
8.59
7,983.15
965.66
501.98
213.85
231.04
1,957.44

14,636

82.14
59.53
-
-
203.18
-
486.82
11.05
20.69
1.47
24.55
889.42

Financial Statements 2023

The T.E.A. Project

10

Note 08

Food Programme
Food Stuff
Cleaning and Maintenance
Gas and Others
Tools and Equipment
Travelling
Wages
Note 09
T.E.A.Center
Center Maintenance
Food and Beverages
Electricity
Salaries
Transport Charges
Donations
EPF 12%
ETF 3%
Telephone
Tools and Equipment’s
Stationary
Travelling Expenses
Fuel and Parking
Others
Wages
Note 10
Training and Empowerment Programm
Food and Beverages
Special Events and Programme
Workshop Material
Tools & Equipments
Tutor Payment
Stationary
Travelling
Note 11
Saturday Service
Travel
Food and Beverages

1,083,110
3,750
30,850
10,439
29,750
54,500
1,212,399
142,590
9,115
21,429
-
343,077
-
-
-
-
17,475
-
62,772
35,590
53,258
67,900
753,206
34,773
2,776
-
12,800
32,000
43,709
14,150
140,208
1,777
7,645
9,422
2,658.71
9.21
75.73
25.62
73.03
133.78
2,976.08
350.02
22.37
52.60
-
842.15
-
-
-
-
42.90
-
154.09
87.36
130.73
166.67
1,848.90
85.36
6.81
-
31.42
78.55
107.29
34.73
344.17
4.36
18.77
23.13

Financial Statements 2023

The T.E.A. Project

11

Local Expenses
Foods and Beverages
Note 13
Financial Expenses
Local Bank Charges
UK Bank Charge
Note 18
Account Receivable
Note 19
Cash and Cash Equivalent
Cash in Hand
Petty Cash
Com bank -Saving Account
Com Bank - Current Account
Money MKT Account
CAF Account
Total
Note 20
Income tax
Note 21
Professional fees
Note 12
Volunteer Programme
Allowance
-
520
259,420
22,508
60,759
83,268
-
-
-
1,969.12
1,093,217.25
1,083,769.22
3,093.73
5,254,294.27
7,436,343.59
512.68
58000
-
1.28
636.80
55.25
149.15
204.40
-
4.83
2,683.52
2,660.33
7.59
13,076.55
18,432.83
1.26
142.37

Financial Statements 2023

The T.E.A. Project

12

The T.E.A. Project Notes to the Financial Statements for the Year Ended 31st December 2023

Property Plant & Equipment

Note 14
Fixed Assets Leased Land
& Building
Motor
Vehicle
Computers
& Printers
Furniture
& Fixtures
Tools &
Equipment
Total
Balance as at Beginning
Additions/(Disposals)
Disposal
Revaluation
Balance as at Closing
ACCUMULATED DEPRECIATION
Balance as at Beginning
Depreciation for the year
Disposal Assets Dep.
Balance as at Closing
Net Assets as at end of month
In GBP
7,998,710
479,250
348,218
429,990
526,316
9,782,484
814,730
-
-
-
-
-
814,730
-
-
-
-
-
-
-
-
-
-
-
-
8,813,440
479,250
348,218
429,990
526,316
10,597,214
642,603
76,700
270,492
93,411
162,624
1,245,830
440,672
95,850
69,644
85,998
105,263
-
797,427
-
-
-
-
-
-
1,083,275
172,550
340,136
179,409
267,887
2,043,257
7,730,165
306,700
8,082
250,581
258,429
8,553,957
18,975.24
752.86
19.84
615.10
634.37
20,997.40
Assets Depreciation Rate
Leased Land & Building 5%
Motor Vehicle 20%
Computers & Printers 20%
Furniture & Fixtures 20%
Tools & Equipment 20%

When calculating the depreciation for the organization's Fixed Assets, the practice is to calculate depreciation for the whole year whenever the assets are brought. If the assets were sold, there is no depreciation for that year in that sold Assets for the whole year.

Financial Statements 2023

The T.E.A. Project

13

Income and Expenses Quarterly wise of the Year 2023

Ordinary Income/Expense Q - 1 Q - 2 Q - 3 Q - 4 Cumulative
Income
Local Donation
Hiradramani International Expor 2,500,000.00 2,500,000.00 5,000,000.00
Peter Simon -
NTT 105,000.00 539,000.00 1,000,000.00 1,644,000.00
Volunteer Accommodation 72,700.00 72,700.00
Raffle Draw Fund Raising Event 118,500.00 64,760.00 183,260.00
Till Box Collection 29,610.00 29,610.00
Other Donation 294,061.08 17,580.00 286,442.90 70,000.00 668,083.98
Donations -Other 376,000.00 21,250.00 25,000.00 422,250.00
Total Donations Local 3,318,171.08 2,643,830.00 898,142.90 1,159,760.00 8,019,903.98
Investment Income
Interest Income 302,103.69 13,346.14 20,123.64 87,043.48 422,616.95
Total Investment Income 422,616.95
UK Donations
FP Forrester 12,701.33 7,774.83 12,347.60 11,855.30 44,679.06
FP Givey Stripe Payments 3,819.70 305,930.49 1,207,111.49 230,149.61 1,747,011.29
FP MERRY HENRY EVENTS Wheatshe 128,561.51 116,184.50 123,310.00 118,437.00 486,493.01
FP Racheal and Carl D Ellis 12,832.76 7,637.90 12,176.20 8,062.00 40,708.86
FP TEA MARCHANT MARCHANT K 12,791.49 7,774.83 12,347.60 32,913.92
FP Tea Project K Storebo -
Kate Merchant -
L. Norde 203,778.00 203,778.00
FP Smaya Soul Decemble Alice 8,643.76 11,927.13 4,870.00 9,769.75 35,210.64
FP STMHALL SHAZIA TARANNUM S 53,852.52 66,565.71 120,418.23
FP Julienne James J L -
FP Donation Haines Leonie 134,271.99 134,271.99
Other Donations 7,358.66 30,606.75 11,854.40 49,819.81
Total UK Donations 374,833.72 523,795.39 1,402,769.64 593,906.06 2,895,304.81
Total Income 3,995,108.49 3,180,971.53 2,321,036.18 1,840,709.54 11,337,825.74
Expense
Center Expenses
Center Maintenance 117,000.00 25,590.00 142,590.00
Food and Beverages 2,165.00 6,950.00 9,115.00
Electricity 13,614.39 7,814.35 21,428.74
Salaries -
Transport Charges 343,077.09 343,077.09

Financial Statements 2023

The T.E.A. Project

14

Donations -
EPF 12% -
ETF 3% -
Telephone -
Tools and Equipment’s 3,505.00 780.00 7,390.00 5,800.00 17,475.00
Stationary -
Travelling Expenses 56,922.12 2,900.00 2,100.00 850.00 62,772.12
Fuel and Parking 13,150.00 9,950.00 12,490.00 35,590.00
Others 51,093.20 2,165.00 53,258.20
Wages 19,000.00 27,100.00 6,000.00 15,800.00 67,900.00
Total Center Expenses 552,654.21 107,602.59 37,959.35 54,990.00 753,206.15
Financial Expenses
Local Bank Charges 6,858.30 6,671.19 3,838.94 5,140.00 22,508.43
UK Bank Charges 35,251.38 13,255.23 6,150.80 6,102.00 60,759.41
Total Financial Expenses 42,109.68 19,926.42 9,989.74 11,242.00 83,267.84
Food Programme
Food Stuff 263,746.00 320,985.00 218,164.58 280,214.60 1,083,110.18
Cleaning and Maintenance 3,750.00 3,750.00
Dry Rations -
Gas and Others 9,850.00 7,500.00 6,200.00 7,300.00 30,850.00
Tools and Equipment 8,749.00 1,190.00 500.00 10,439.00
Travelling 8,500.00 9,150.00 12,100.00 29,750.00
Wages 5,000.00 13,000.00 36,500.00 54,500.00
Total Food Programme 273,596.00 350,734.00 247,704.58 340,364.60 1,212,399.18
Income Tax 512.68 512.68
Office Expense
Advertising & Promotion -
Donations 18,498.00 30,400.00 26,000.00 63,000.00 137,898.00
Electricity 10,888.00 13,620.52 5,209.57 30,159.43 59,877.52
EPF 12% 85,200.00 85,200.00 46,800.00 56,800.00 274,000.00
ETF 3% 12,780.00 12,780.00 7,020.00 3,960.00 36,540.00
Fundraising 20,450.00 20,450.00
Consumable
Bills 6,570.00 8,890.00 17,053.86 8,040.00 40,553.86
Membership Fee 42,105.00 42,105.00
Special Events 1,950.00 35,000.00 21,247.98 64,755.00 122,952.98
Food and Beverages 2,770.00 4,100.00 3,900.00 10,770.00
Tools & Equipment’s 3,450.00 5,150.00 8,600.00
License and Insurance 1,950.00 123,648.00 10,238.31 135,836.31
Office Maintenance 4,180.00 4,180.00
Safety and Medical -
Software 145,617.17 145,617.17
Training and Development 21,890.00 57,850.00 9,880.00 89,620.00
Postage and Delivery 1,100.00 1,100.00
Information Technology -
Salaries 580,355.00 874,545.00 852,795.00 944,495.00 3,252,190.00

Financial Statements 2023

The T.E.A. Project

15

Stationery 355,429.31 17,923.44 11,289.00 8,750.00 393,391.75
Travelling 44,646.08 59,426.60 48,449.53 51,977.00 204,499.21
Telephone and Internet 31,630.00 18,111.48 17,811.48 19,565.83 87,118.79
FA Depreciation for the Month -
other 3,500.00 3,500.00
Tea Scooter Maintenance 22,180.00 40,234.67 31,705.00 94,119.67
Total Office Expense 1,220,401.39 1,346,869.71 1,115,426.42 1,482,222.74 5,164,920.26
Professional fees 58,000.00 58,000.00
Pre School Expense
Stationary 28,039.00 1,535.00 1,294.00 2,595.00 33,463.00
Training and Development 5,250.00 15,000.00 4,000.00 24,250.00
Teachers Allowances -
Workshop Materials -
Special Events 3,435.00 14,240.00 25,460.00 39,635.42 82,770.42
Telephone -
Foods for Kids 99,220.00 41,070.00 52,110.00 5,920.00 198,320.00
Travelling 1,500.00 3,000.00 4,500.00
Donation 8,430.00 8,430.00
Teaching Materials 600.00 600.00
Repair and Maintenance 10,000.00 10,000.00
Total Pre School Expense 144,374.00 58,345.00 93,864.00 65,750.42 362,333.42
Volunteer Programme
Allowance 82,500.00 71,400.00 69,500.00 35,500.00 258,900.00
Local Expenses -
Foods and Beverages 520.00 520.00
Total Volunteer Programme Expenses 82,500.00 71,400.00 69,500.00 36,020.00 259,420.00
Training & Empowerment Programme
Food and Beverages 28,683.00 3,050.00 3,040.00 34,773.00
Special Events and Programme 2,776.00 2,776.00
Workshop Material -
Tools & Equipment’s 12,800.00 12,800.00
Telephone and Internet -
Tutor Payment 32,000.00 32,000.00
Stationary 21,819.00 985.00 20,205.00 700.00 43,709.00
Travelling 750.00 2,500.00 9,200.00 1,700.00 14,150.00
Total Training & Empowerment Programme 66,828.00 6,535.00 32,445.00 34,400.00 140,208.00
Saturday Service
Workshop Material 8,300.00 1,400.00 9,700.00
Travel 1,777.00
Food and Beverages 5,895.00 1,750.00 7,645.00
Total Saturday Service Expenses 8,300.00 5,895.00 3,150.00 1,777.00 19,122.00
Total Expense 2,390,763.28 1,967,307.72 1,610,039.09 2,085,279.44 8,053,389.53
Net Ordinary Income 1,604,345.21 1,213,663.81 710,997.09 (244,569.90) 3,284,436.21
Profit for the Year 1,604,345.21 1,213,663.81 710,997.09 (244,569.90) 3,284,436.21

Financial Statements 2023

The T.E.A. Project

16

Appendix 01

Changes details of Exchange Rate

Quarter 1 1 **Average ** Quarter 2 **Average ** **Average **
January 445.87 April 398.04
February 440.51 May 385.47
March 400.37 June 381.99
428.92 388.50
Quarter 3 **Average ** Quarter 4 **Average **
July 411.10 October 395.51
August 408.97 November 407.35
September 399.53 December 413.87
406.53 405.58
Average for the Year
**Quarter 1 Average ** 428.92
**Quarter 2 Average ** 388.50
**Quarter 3 Average ** 406.53
**Quarter 4 Average ** 405.58
407.38

Financial Statements 2023

The T.E.A. Project

17 Financial Statements 2023 The T.E.A. Project

18 Financial Statements 2023 The T.E.A. Project