ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
ZAMBESI MISSION
CHARITY REGISTRATION NUMBER: ENGLAND AND WALES 1165004 SCOTLAND SCO46748
ZAMBESI MISSION
CONTENTS
| CONTENTS | |
|---|---|
| Page 2 | Legal and Administrative Information |
| Pages 3 to 6 | Trustees' Report |
| Page 7 | Independent Examiner's Report to the Trustees |
| Page 8 | Statement of Financial Activities |
| Page 9 | Balance Sheet |
| Pages 10 to 15 | Notes to the Financial Statements |
1
ZAMBESI MISSION LEGAL AND ADMINISTRATIVE INFORMATION
CHARITY REGISTRATION NUMBER 1165004 OSCR NUMBER SCO46748 START OF FINANCIAL YEAR 1 January 2020 END OF FINANCIAL YEAR 31 December 2020 TRUSTEES WHO SERVED DURING 2020 Trevor Matthews (Chair) Colin Stonelake (Treasurer) Robert Ghent Katriona Carmichael Janet Brown (appointed 10th March 2020)
The existing trustees appoint any new trustees following the provisions laid out in the organisation's governing instrument.
LEGAL STATUS Charitable Incorporated Organisation GOVERNING INSTRUMENT Constitution registered with the Charity Commission on 30th December 2015
OBJECTS
CORRESPONDENCE ADDRESS
(1) To advance the Christian Faith. (2) To carry out such other charitable purposes as the trustees may from time to time decide. Mr Mike Beresford Zambesi Mission c/o York Baptist Church Priory Street York YO1 6EX
PRIMARY BANKERS National Westminster Bank Plc CAF Bank
INDEPENDENT EXAMINER Judith Summerfield Summerfield Accountancy Services ICAEW 5 Bowyers Close Copmanthorpe York North Yorkshire YO23 3XW
2
ZAMBESI MISSION TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
The Trustees present their annual report and financial statements of the charity for the year ended 31 December 2020. The financial statements 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 Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and 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.
Structure, Governance and Management
Zambesi Mission is a registered charity (1165004) governed by its constitution and registered on 30th December 2015. On 30th June 2016, as authorised by the Charity Commission under Section 105 of the Charities Act 2011, all assets and liabilities of Zambesi Mission (1078673) were transferred to Zambesi Mission (1165004).
The incorporated organisation was also appointed as sole trustee of the unincorporated charity and the results of both charities have been combined in these accounts.
Recruitment and Appointment of Trustees
Trustees are generally already familiar with the work of the charity having been involved in some way prior to their appointment, either with the charity direct or with some other connection. All potential new appointees are required to submit an application form, and references are taken up. All the potential trustees are appointed to the Executive Committee and after a period of time are nominated by a trustee to become a trustee. The appointment is made by a majority vote of the trustees.
During the year ending 31 December 2020, the number of trustees increased from four to five , after Janet Brown was appointed on 10th March 2020.
The removal of trustees, should it be necessary, is effected by a majority vote of the trustees.
Organisational Structure
The Charity’s governing body is the Board of Trustees which meets four times a year.
The Trustees have appointed an Executive Committee which meets regularly to oversee the strategic direction and management of the Charity. This Committee includes trustees and other appointed non-executive members. Selected members of staff are also invited to attend.
The Mission Director is the CEO and has day to day managerial responsibility for all aspects of the Charity. The Mission Director’s powers are delegated by the Executive Committee. The Mission Director reports to the Executive Committee and is ultimately accountable to the Board of Trustees.
Reserves Policy
It is the policy of the charity to maintain a general unrestricted reserve which are the free reserves of the charity at a level which equates to approximately three months unrestricted expenditure. This provides sufficient funds to cover UK and Field Expenditure, support costs and to respond to emergency needs. The General Fund remained above this level throughout the year.
Additionally in 2012, the Trustees decided to create a Strategic Reserve representing the funds which would be needed in the event that Zambesi Mission was wound up. This is an unrestricted fund and was created by making a transfer from the General Reserve.
The balance of this reserve is reviewed annually and adjusted based on the trustees' assessment of the requirement. At 31 December 2020, the balance was £43,670.
Risk Management
The Trustees have identified the risks which impact our work. We believe that maintaining our free reserves at the levels stated above, together with our annual review of the controls over our financial systems and ensuring our assets and staff are adequately insured, will provide sufficient resources in the event of adverse conditions occurring.
The Trustees continue to ensure that Zambesi Mission complies with all relevant legislation including Data Protection, Health and Safety. The mission has terms and conditions contracts incorporating Job Descriptions with all of its employees and operates Disciplinary & Grievance procedures.
Fundraising
Zambesi Mission is a faith-based Christian organisation. ZM does not employ professional fundraisers. zm has not registered with the Fundraising Regulator, primarily because we feel its focus is not relevant to the way we communicate with supporters. We comply with all relevant sections of the Fundraising Regulator’s Code of Fundraising Practice.
3
ZAMBESI MISSION TRUSTEES REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
Objectives and Activities
Objects
To advance the Christian Faith.
To carry out such other charitable purposes as the trustees may from time to time decide.
Activities
The mission is practically engaged in the advancement of the Christian Faith in Malawi and parts of Mozambique and also within the UK. This is resourced and managed in the UK. Donations to the work are primarily received from supporters in the UK, which we gratefully acknowledge.
The work of the mission in Malawi and Mozambique is particularly to:
a) Promote the proclamation of the Gospel, and the making of true disciples by
i) supporting the training of students as future pastors and evangelists at the Evangelical Bible College of Malawi (EBCoM);
- ii) sponsoring key workers in the Zambezi Evangelical Church (ZEC) including Youth Coordinators, and church planters; and iii) helping with the training and equipping of Sunday School teachers, and child evangelism.
b) Enable pastors and churches to be more effective in the service of the Gospel by providing practical assistance, training and encouragement to them specifically through:
- i) providing bicycles for pastors and evangelists and annual Bookset Conferences to help refresh, teach and equip practising pastors and church elders; and
ii) assisting churches to complete their building, usually by providing a durable steel roof.
c) Assist the Church with practical programmes of care and outreach which provide much-needed help to those in need and do so as part of sharing the saving love and compassion of the Lord Jesus Christ. This includes supporting Orphan Day Care Centres caring for orphan children and telling them about Jesus, as well as assisting our partner ZEC's Health Centres and Rural Hospital, and supporting income generating schemes for families affected by extreme poverty and poor nutrition, including some who have been affected by AIDS.
Key commitments include:
In Malawi and Mozambique:
-
The support of Malawian lecturers teaching at the Evangelical Bible College of Malawi (EBCoM);
-
Sponsorship of students training at EBCoM;
-
Support other workers - ZEC Church Planters, Key workers, Evangelists and Youth Workers. In the UK:
Representatives preaching and teaching in churches to
- proclaim the Gospel and Advance the Christian Faith in this country; and
· provide an opportunity for UK Christians to express their care and concern by praying and giving financially, thereby providing also for the work in Africa.
Public Benefit
In reviewing the overall aim and the objectives of the Charity, and in exercising their powers and duties, the Trustees have had due regard for the Charity Commission’s public benefit guidance. The activities of Zambesi Mission are carried out to further its charitable purpose for the public benefit as summarised in the section 'Activities' (above) and highlighted in the following section on the listing of 'Achievements and Performance'.
Achievements and Performance during the Year
Although 2020 started out the same as most other years in the mission's 128 year existence, all this was to change in March 2020. The arrival of a global pandemic had a dramatic impact on the mission's work. Malawi and northern Mozambique were less badly affected compared to the UK, but nonetheless all three countries faced lockdowns and closure of churches, schools and colleges. Given the anticipated impact on the mission's income through individuals and churches a decision was made in the second quarter of 2020 to minimise discretionary expenditure where reasonably possible.
Income received in 2020 was 59% of that received than in 2019. Given the circumstances faced in 2020, we give thanks to God for His provision and for what was achieved in such difficult conditions, as set out below.
Zambesi Mission has a small team based in the UK and in Malawi. The mission’s Field Director is responsible for day to day management in Malawi. Staff details at the end of 2020 are as follows:
• In Malawi: Simon Chikwana (Field Director), Mrs Rose Chirwa (Projects Officer) and Mrs Mercy Carlos (Field Administrator). We also employ five guards and a housekeeper at our guest houses and office in Blantyre.
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ZAMBESI MISSION TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
• In the UK: Our full-time Mission Director Mike Beresford has responsibility for Zambesi Mission's international operations. He leads our part-time UK Staff team consisting of Charlotte Dunning (Office Manager) and Ritchie Dealtry (Administrator). We have a team of Honorary Representatives geographically spread throughout the country: Ruth MacBean in the East Midlands, Carol Fernandez in East Anglia and Philip Curtis in the South of England; Mike Berry stepped down as Honorary Representative for the West Midlands in October. The UK Staff seek to share the Gospel, encourage and inform others and build support for the Mission's work through partnerships with supporters - both churches and individuals.
Zambesi Mission also sponsored and supported Malawian and Mozambican Christians in the work of the Gospel in their own countries:
• In ZEC Mozambique, the Mission sponsored the Chair, the General Secretary, the national Fellowship of Youth Coordinator, the Coordinator for Women’s Work and two Regional Superintendents. The mission also supported three churchplanters in Mozambique: churchplanters are supported for a total of four years each, the amount being contributed progressively declining over the final two years.
• Zambesi Mission supported eight church planters and church development pastors from within its partners' churches in Malawi: ZEC and the River of Life Evangelical Church.
• ZM funded the secondary school fees for 48 pastors’ children. Pastors are generally very impoverished and cannot usually afford such fees themselves. Only primary school education is free in Malawi. Both primary and secondary school terms were disrupted by the nationwide school closures in Malawi between April and October 2020. The school year was truncated but children were still expected to study and complete their end of year exams.
• Through ZEC Malawi, the Mission funded the care (including school fees where applicable) of 162 orphans in three Orphan Day Care Centres (Ntonda, Nthorowa and Chifunga). With generous support from States of Guernsey Overseas Aid, throughout 2020 the mission has been implementing an income generating project called "Tender Shoots" at Chifunga and Nthorowa. Once completed this project will see the installation of maize and rice milling machines that will generate a small income stream to allow the local church to support the children at the two Orphan Daycare Centres. These projects were delayed by the pandemic and will now be completed and fully operational in 2021.
• The Mission sponsored 39 students from Malawi and Mozambique to train for leadership roles in the church on full-time residential and part-time theological courses at certificate, diploma and degree level at the Evangelical Bible College of Malawi. All but one of these students come from the Zambezi Evangelical Church in Malawi or Mozambique. The college was closed from April until October, but all students completed their 20192020 academic year before the end of 2020. Financial support was also provided during 2020 to allow the college to employ two Malawian lecturers.
• During 2020 the Evangelical Bible College of Malawi (EBCoM) faced severe financial challenges that were exacerbated by the coronavirus pandemic. Rising staff costs led to a major restructuring programme which resulted in the appointment of a new staff team commencing in December. The mission also funded two capital projects during 2020 at EBCoM: firstly, two married students' houses were rebuilt after subsidence made the originals uninhabitable; secondly, the mission part-funded the construction of two semi-detached houses which will be rented out and used for income generaiton. These are due for completion early in 2021. The mission also advanced the funds necessary to drill a water supply borehole at the college. The cost of this was then repaid from the cost savings that the college made by reducing its water bills.
• The impact of the pandemic in Malawi forced ZM to cancel its plans to carry out Bookset Conferences in 2020. Just one "Learn2Serve" Training Seminar was held at Kasinje in central Malawi for pastors and elders from the River of Life Evangelical Church. This was carried out in collaboration with partner J-Life Malawi. 38 church elders and pastors were taught about personal faith, discipleship and Christian leadership.
• 1,408 heavily subsidised Bibles in local languages Chichewa or Tumbuka were provided to Christians in Malawi and Mozambique. The local believer pays about £1.25 per Bible, whilst the mission pays the remainder of the cost. This extremely popular scheme allows those who have little money and poor access to shops to have their own copy of God's Word. The majority of these were distributed in the period up to April when rising numbers of COVID cases led to a decision to suspend the scheme to minimise social interaction and the risk of spreading the virus.
• Two churches in Malawi and Mozambique were provided with iron sheets to construct their new roof during 2020.
• Zambesi Mission funded the allowances for two Development Workers and one Administrator in the non-denominational Children for Christ Ministry (CFCM). CFCM runs Bible Clubs for children and also trains Sunday school teachers. Despite the challenges faced in 2020 they trained 487 Sunday school teachers and ran or supported many Bible Clubs, through which it is estimated that 3,000 children hear the good news about Jesus every week. During 2020 they continued to focus on developing trainers who can teach Sunday school teachers. At the end of 2020 they had 22 approved trainers who can now assist them in future Sunday school teacher training seminars.
• Malawi and Mozambique were badly affected by the storms associated with Cyclone Idai in 2019. The impact of these storms continued in 2020 as many families faced extreme hunger during the early months of 2020. These are often known as the hunger months, since the population has usually exhausted all their stores of food and is still waiting for the coming harvest of their once-per-year crop in April/May. The mission provided 50kg bags of maize to 265 pastors and retired pastors and their widows during the hunger season. The construction of a new pastor's house at Nanluka was also completed after the original house collapsed during the storms.
All these endeavours were aimed at the extension of the kingdom of God through the strengthening of His Church in Malawi and Mozambique. We thank God for the provision and prayer from Christians and churches in the UK and elsewhere, which made all of this possible.
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ZAMBESI MISSION TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
Financial Review
Total income for the year was £240,019 (2019 – £406,552), expenditure during the year was £241,060 (2019– £304,915) showing a deficit for the year of £1,161 (2019 – surplus of £102,498).
Zambesi Mission maintains a general reserve fund into which are placed all gifts, donations and legacies received without any stipulation or preference expressed by the donor. A number of designated funds are also maintained to fund expenditure in key areas in accordance with ZM policy. At the discretion of the Trustees, certain gifts and donations received are allocated to these funds based on a preference (but not a requirement) expressed by the donor. Occasionally ZM will receive gifts from donors with specific requirements attached to the gift. These gifts are maintained in a restricted fund and only used in accordance with the specific instructions of the donors.
At 31st December 2020, balances were held on the following funds: Designated funds £61,092 Restricted funds £11,013 General funds £175,844
Plans for Future Period
Zambesi Mission’s overall aim is to see sustainable gospel-preaching disciple-making churches across Malawi and northern Mozambique.
• Zambesi Mission was founded in 1892 by Joseph Booth whose vision was for “Africa for the African”. Although this is mainstream thinking today, in Joseph Booth’s time the concept was revolutionary. The mission tries to continue this vision today, by helping Malawian and Mozambican churches and Christian organisations in a way that avoids unhealthy dependency and inequity - "to help them to help themselves".
- Zambesi Mission also holds to the principle of a “partnership in the gospel”. An international relationship between churches and Christians. This partnership is centred on Christ, founded on prayer and worked through ordinary people.
• Although ZM works mainly in partnership with the Zambezi Evangelical Church, the Church which grew out of the work of the Mission, we also work through other churches and Christian partners. During 2020 our local partners were: the Zambezi Evangelical Church, the River of Life Evangelical Church, the Evangelical Bible College of Malawi (EBCoM), Children for Christ Ministry (CFCM) and J-Life Ministries (Malawi).
• Zambesi Mission continues to discern the optimum way to support our partners in a way that avoids inequity and unhealthy dependency. Although the mission is concerned to see the Church grow and develop, it wants to ensure that such growth is sustainable. One of our ongoing initiatives involves the provision of income-generating schemes to help the church support its own activities. Zambesi Mission is also endeavouring to enable its partner ZEC's Orphan Day Care centres to become self-sustaining through agricultural projects and other initiatives.
• Zambesi Mission seeks to demonstrate the love of Jesus through both words and deed. This involves supporting both the spiritual health of the church, as well as practical initiatives such as healthcare, orphan care and other practical methods of support. Zambesi Mission's practical support for its partners will be always be implemented through churches, since we regard the church as one of the main ways through which God chooses to work in the world today.
• As a founding member of EBCoM, Zambesi Mission continues to work with the College Council and Management to help to ensure the long term sustainability of the college as a provider of high quality biblical pastor training and education. The construction of the semi-detached houses at EBCoM for rental will also help the college towards increased sustainability.
Finally, the trustees wish to thank all who have supported the Mission’s work through their concern, prayers and generous giving throughout the last year. May God bless all who have contributed to the success of this work.
Trustees Responsibilities
The Charities Act 2011 requires 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 the surplus of the charity for that period. In preparing the financial statements the trustees are required to:
-
Select suitable accounting policies and apply them consistently
-
Make judgements and estimates that are reasonable and prudent
-
Prepare financial statements on the going concern basis unless it is inappropriate to presume that the trust will continue in existence.
The trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the trust. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustees on 3rd June 2021 and signed on their behalf by Colin Stonelake, Trustee
6
ZAMBESI MISSION
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ZAMBESI MISSION
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31st December 2020 which are set out on pages 8 to 15.
Respective responsibilities of trustees and examiner
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005(the “2005 Act”), the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011 (‘the Act’). You are satisfied that your charity is not required by charity law to be audited and have chosen instead to have an independent examination.
I report in respect of my examination of the charity’s accounts as carried out under section 44(1) (c) of the2005 Act and section 145 of 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 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England & Wales (ICAEW), 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.
Judith Summerfield Summerfield Accountancy Services ICAEW 5 Bowyers Close Copmanthorpe York North Yorkshire
YO23 3XW Date: 3rd June 2021
7
ZAMBESI MISSION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes Income and endowments from: Donations and legacies 3a Investments 3b Other 3c Total Expenditure on: Charitable Activities 4 Total Net Income Transfers Between Funds Other recognised exchange gains/(losses) Net Movement in Funds Reconciliation of Funds: Total Funds Brought Forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted Funds £ Designated Funds £ Restricted Funds £ TOTAL 2020 £ TOTAL 2019 £ 124,800 66,678 24,486 215,964 366,629 91 - - 91 823 23,964 - - 23,964 39,100 |
|---|---|
| 148,855 66,678 24,486 240,019 406,552 |
|
| 169,882 34,835 36,343 241,060 304,915 |
|
| 169,882 34,835 36,343 241,060 304,915 |
|
| (21,027) 31,843 (11,857) (1,041) 101,637 6,534 (6,534) - - - (120) - - (120) 861 |
|
| (14,613) 25,309 (11,857) (1,161) 102,498 190,457 35,783 22,870 249,110 146,612 |
|
| 175,844 61,092 11,013 247,949 249,110 |
Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing.
The notes on pages 10 to 15 form part of these financial statements.
8
ZAMBESI MISSION BALANCE SHEET
AS AT 31 DECEMBER 2020
| Notes Fixed Assets Tangible Assets 2 Current Assets Debtors & Prepayments 7 Cash at Bank and in Hand 6 Total Current Assets Creditors:amounts falling due within one year 8 NET CURRENT ASSETS TOTAL ASSETSless current liabilities NET ASSETS Funds of the Charity General Funds Designated Funds Restricted Funds 5 Total Funds |
Unrestricted Funds £ Designated Funds £ Restricted Funds £ TOTAL 2020 £ TOTAL 2019 £ 61,455 - - 61,455 63,819 2,082 - - 2,082 6,640 113,772 61,092 11,013 185,877 179,647 |
|---|---|
| 115,854 61,092 11,013 187,959 186,287 |
|
| (1,465) - - (1,465) (996) |
|
| 114,389 61,092 11,013 186,494 185,291 |
|
| 175,844 61,092 11,013 247,949 249,110 |
|
| 175,844 61,092 11,013 247,949 249,110 |
|
| 175,844 - - 175,844 190,457 - 61,092 - 61,092 35,783 - - 11,013 11,013 22,870 |
|
| 175,844 61,092 11,013 247,949 249,110 |
The notes on pages 10 to 15 form part of these financial statements.
The financial statements were approved and authorised for issue by the trustees on 3rd June 2021 and signed on their behalf by Colin Stonelake, Trustee.
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ZAMBESI MISSION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1. ACCOUNTING POLICIES
Basis of Preparation
Zambesi Mission is charity incorporated in England, Wales and Scotland. The address of the registered office is given in the charity information on page 2 of these financial statements. The nature of the charity’s operations and principal activities are included in the Trustees Report.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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), the Charities Act 2011, and UK Generally Accepted Practice.
The charity has applied Update Bulletin 1 as published on 2 February 2016 and does not include a cash flow statement on the grounds that it is applying FRS 102 Section 1A.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the 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) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value as all the assets and liabilities have been transferred to Zambesi Mission Charitable Incorporated Organisation. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
Incoming Resources
Recognition of Incoming Resources
These are included in the Statement of Financial Activities (SOFA) when:
▪ the charity becomes entitled to the resources;
▪ the trustees are virtually certain they will receive the resources; and
▪ the monetary value can be measured with sufficient reliability
Government Grants
From time to time, the Charity applies for and receives grants from Government agencies to fund specific projects. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.
Volunteer Help
The value of any voluntary help received is not included in the accounts but is described in the trustees' annual report.
Expenditure and Liabilities
Expenditure is included in the SOFA on an accruals basis. Resources expended are recognised in the period in which they are incurred.
Governance Costs
These are for the running of the Mission itself as an organisation and include costs of the preparation and examination of statutory accounts, the costs of the trustees meetings and cost of any legal advice to trustees on governance or constitutional matters.
Funds accounting
The Trustees have classified the funds of the Mission as follows:
Unrestricted Funds comprise those funds which the Trustees are free to use in accordance with the charitable objects.
Designated Funds are ring fenced to fund expenditure in key areas in accordance with Zambesi Mission policy.
Restricted Funds are used in accordance with the specific instructions of the donors.
Transfers between funds are carried out where there is a shortfall in income in a particular fund or where the trustees deem a transfer of designated funds is required to meet more pressing priorities.
Changes in Accounting Policies and Previous Accounts
There has been no change to the accounting policies (variation rules and methods of accounting) since last year, and no changes to the previous accounts.
10
ZAMBESI MISSION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
Fixed Assets
These are capitalised if they can be used for more than one year, and cost at least £500. They are valued at cost or, if gifted, at the value to the charity on receipt.
Depreciation Expenses
Depreciation is calculated at a rate to write off the cost of tangible fixed assets on the following basis over their estimated useful lives:
Plant and Equipment 20% straight line Vehicles 20% straight line Computer etc 33% straight line
No depreciation is charged to freehold property as the property is maintained to such a standard that the estimated residual value is not less than cost.
Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
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.
Going Concern
At the time of approving the accounts, the trustees have a reasonable expectation that the trustees have 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 accounts.
Pension costs
All employees of the charity are automatically enrolled into a pension scheme and receive a contribution from the charity of 8% of their salary.
Foreign Currency Transactions
Foreign currency transactions are recorded at the average exchange rate for the month in which the transaction occurred. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the retranslation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies, are recognised in the profit and loss account.
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ZAMBESI MISSION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 2. TANGIBLE FIXED ASSETS Cost 1 Jan 2020 Additions Cost at 31 Dec 2020 Depreciation 1 Jan 2020 Charge Disposals Depreciation at 31 Dec 2020 Net Book Value 31 Dec 2020 Net Book Value 31 Dec 2019 Disposals |
Freehold Land Motor Plant & Computer Total & Buildings £ Vehicles £ Equipment £ Equipment £ 2020 £ 60,086 11,809 - - 71,895 - - - - - - - - - - |
|---|---|
| 60,086 11,809 - - 71,895 |
|
| - 8,076 - - 8,076 - 2,364 - - 2,364 - - - - - |
|
| - 10,440 - - 10,440 |
|
| 60,086 1,369 - - 61,455 |
|
| 60,086 3,733 - - 63,819 |
The annual commitments under non-cancelling operating leases and capital commitments are as follows: 31 December 2020 : None 31 December 2019 : None
| 3. INCOME AND ENDOWMENTS a) Donations and legacies Gifts, Tithes & Offerings Gift Aid Tax Recoverable b) Investment Income Deposit Interest c) Other Sundry Income Management Charge |
Unrestricted Funds £ Designated Funds £ Restricted Funds £ TOTAL 2020 £ Unrestricted Funds £ Designated Funds £ Restricted Funds £ TOTAL 2019 £ 115,378 60,322 22,400 198,100 201,670 71,673 74,064 347,406 9,423 6,356 2,085 17,864 8,950 4,474 5,799 19,223 |
|---|---|
| 124,800 66,678 24,486 215,964 210,620 76,147 79,862 366,629 |
|
| 91 - - 91 823 - - 823 |
|
| 91 - - 91 823 - - 823 |
|
| 499 - - 499 1,175 71 - 1,245 23,465 - - 23,465 37,854 - - 37,854 |
|
| 23,964 - - 23,964 39,029 71 - 39,100 |
Included in 2019 income is an amount of £22,000 received from the States of Guernsey towards the Tender Shoots project. This project was completed during 2020 and delivered the installation of maize and rice milling machines which are now being used to generate a small income stream for the local church.
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ZAMBESI MISSION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
4. RESOURCES EXPENDED
| 4. RESOURCES EXPENDED | ||||||||
|---|---|---|---|---|---|---|---|---|
| Unrestricted | Designated | Restricted | TOTAL | Unrestricted | Designated | Restricted | TOTAL | |
| Funds | Funds | Funds | 2020 | Funds | Funds | Funds | 2019 | |
| £ | £ | £ | £ | £ | £ | £ | £ | |
| a) Charitable Activities | ||||||||
| Mission Worker Costs: | ||||||||
| Mission Worker Salaries | - | - | - | - | - | - | - | - |
| Mission Worker Support Costs | - | 306 | 113 | 419 | - | 78 | 68 | 146 |
| Mission Worker Travel Costs | - | - | - | - | - | - | - | - |
| Field Costs: | ||||||||
| Children for Christ | 4,909 | 2,398 | 3,053 | 10,360 | 2,777 | 1,744 | 4,384 | 8,905 |
| EBCOM - Student and Lecturer Suppo | 1,820 | 1,949 | 10,333 | 14,102 | 7,212 | 36,559 | 6,699 | 50,470 |
| Educational Support - Young People | 2,436 | 2,726 | 304 | 5,466 | 7,174 | 765 | 507 | 8,446 |
| EBCOM - Capital Costs | 20,074 | 295 | 90 | 20,459 | 6,355 | 1,379 | 1,122 | 8,856 |
| Health & Medical | 4,197 | 288 | - | 4,485 | 1,102 | 2,594 | 660 | 4,356 |
| Disaster Relief | 8,550 | 6,759 | 3,796 | 19,105 | - | - | 19,696 | 19,696 |
| Field Staff Costs | 22,056 | 3,937 | 871 | 26,864 | 16,894 | 6,238 | 1,187 | 24,319 |
| Field Travel Costs | 11,982 | - | - | 11,982 | 14,714 | 1,134 | 1,125 | 16,973 |
| Gifts & Donations | - | - | - | - | - | - | - | - |
| Guest House | 491 | 1,341 | - | 1,832 | - | 2,809 | 295 | 3,104 |
| Office Costs | 3,976 | 1,121 | - | 5,097 | 8,053 | - | - | 8,053 |
| Orphans Support | 4,122 | 1,549 | 947 | 6,618 | 4,198 | 7,925 | 1,968 | 14,091 |
| Tender Shoots Project | 2,412 | - | 10,439 | 12,851 | 4,122 | - | 11,561 | 15,683 |
| Support for Pastors | 1,848 | 2,182 | 1,446 | 5,476 | 774 | 2,397 | 4,126 | 7,297 |
| Key workers and Church Planters | 8,050 | 1,026 | 877 | 9,953 | 6,505 | 1,026 | 990 | 8,521 |
| Memorial Funds | - | - | 258 | 258 | - | - | - | - |
| Income Generating Projects | - | - | 713 | 713 | - | - | 42 | 42 |
| Other Support to Church Partners | 5,854 | 7,483 | 1,308 | 14,645 | 8,346 | 9,795 | 10,162 | 28,303 |
| - | ||||||||
| UK Costs: | - | |||||||
| Administrative Expenses | 4,742 | - | - | 4,742 | 6,779 | - | - | 6,779 |
| Licenses & Subscriptions | 1,325 | - | - | 1,325 | 1,044 | - | - | 1,044 |
| Office Rent & Rates | 1,800 | - | - | 1,800 | 1,800 | - | - | 1,800 |
| Publicity Costs | 5,061 | - | - | 5,061 | 5,313 | - | - | 5,313 |
| Staff Costs | 51,221 | 968 | 1,795 | 53,984 | 50,143 | 2,908 | 1,593 | 54,644 |
| Travel & Subsistence | 1,127 | 507 | - | 1,634 | 5,323 | - | - | 5,323 |
| Training | 1,148 | - | - | 1,148 | 1,732 | - | - | 1,732 |
| Retired Missionaries | - | - | - | - | - | - | - | - |
| Governance Costs: | ||||||||
| Independent Examiners Fees | 500 | - | - | 500 | 435 | - | - | 435 |
| Executive Council Expenses | 181 | - | - | 181 | 584 | - | - | 584 |
| 169,882 | 34,835 | 36,343 | 241,060 | 161,379 | 77,351 | 66,185 | 304,915 |
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ZAMBESI MISSION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
5. RESTRICTED FUNDS
| M&R MacBean ZM Projects Officer ZM Field Director Other field support EBCOM General Support EBCOM Student & Lecturer Support Church Planters & Key Workers Medical/Health Orphan Day Care Disaster Relief Pastors Support Literature Church Building Projects Educational Support - Young People Income Generating Projects Memorial Funds Tender Shoots Project Children for Christ Specified Gifts ZM Director UK - other support costs |
Balance Reallocation Transfers to Balance 1 Jan 2020 of opening balances Income Expenditure other Funds 31 Dec 2020 £ £ £ £ £ - - 113 (113) - - - - 135 (135) - - - - 736 (736) - - - - - - - - - - 90 (90) - - - - 13,393 (10,333) - 3,060 - - 877 (877) - - - - - - - - 10,806 (10,439) 1,201 (947) - 621 3,796 - - (3,796) - - 1,738 (983) 691 (1,446) - - - - 1,099 (1,099) - - - - 209 (209) - - 111 - 193 (304) - - 4,793 - 74 (713) - 4,154 1,034 - - (258) - 776 - 10,439 - (10,439) - - - - 3,053 (3,053) - - - 983 827 - - 1,810 - - 1,795 (1,795) - - 592 - - - - 592 |
|---|---|
| 22,870 - 24,486 (36,343) - 11,013 |
The restricted funds are represented by tangible assets and cash reserves of the charity
6. CASH AT BANK AND IN HAND
| Current Accounts 7. DEBTORS AND PREPAYMENTS Gift Aid Prepayments and Accrued Income |
Unrestricted Funds £ Designated Funds £ Restricted Funds £ TOTAL 2020 £ TOTAL 2019 £ 113,772 61,092 11,013 185,877 179,647 |
|---|---|
| 113,772 61,092 11,013 185,877 179,647 |
|
| Unrestricted Funds £ Designated Funds £ Restricted Funds £ TOTAL 2020 £ TOTAL 2019 £ 1,879 - - 1,879 6,640 203 - - 203 - |
|
| 2,082 - - 2,082 6,640 |
8. CREDITORS ACCRUALS AND DEFERRED INCOME: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Sundry Creditors Independent Examiners Fees |
Unrestricted Funds £ Designated Funds £ Restricted Funds £ TOTAL 2020 £ TOTAL 2019 £ 965 - - 965 496 500 - - 500 500 |
|---|---|
| 1,465 - - 1,465 996 |
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ZAMBESI MISSION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
9. STAFF COSTS AND NUMBERS
| 9. STAFF COSTS AND NUMBERS | |
|---|---|
| 2020 £ Gross Wages & Salaries 74,403 Employers National Insurance Costs 169 Pension Contributions 6,276 80,848 Employees who were engaged in each of the following activities: 2020 TOTAL Activities in furtherance of organisation's objects 6 Management and administration 7 |
2019 £ 72,416 755 5,794 |
| 78,964 | |
| 2019 TOTAL 6 6 |
All employed members of staff are paid through PAYE systems in the UK and Malawi. No employees received emoluments in excess of £60,000 (2019: None).
10. TRUSTEES AND OTHER RELATED PARTIES
No payments were made to Trustees or any persons connected with them during this financial period, other than reimbursement for expenses incurred on Charity business. The Charity paid rent of £1,800 (2019: £1,800) to York Baptist Church, a registered charity of which Colin Stonelake is a Trustee. The Charity also received donations from York Baptist Church of £3,682 (2019: £5,421). The Charity also received donations from Newark Evangelical Church, a registered charity of which Robert Ghent is a trustee, of £200 (2019: £200).
The Charity received donations from 5 trustees of £13,924 (2019: £13,718). No conditions were attached to these donations.
The Charity also reimbursed trustees for expenses incurred in attending trustees meetings of £0 (2019: £460). No other material transaction took place between the organisation and a trustee or any person connected with them during the financial period.
11. RISK ASSESSMENT
The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks.
12. RESERVES POLICY
The trustees have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The trustees aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The trustees will endeavour not to set aside funds unnecessarily.
13. PUBLIC BENEFIT
The charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the charity has achieved this are provided in the Trustees report. The Trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake.
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