Charity registration number: 1165059
## **Trustees Annual Report**
## **and**
## **Financial Statements**
**For the year ended 31 December 2021**
**AFFCAD UK**
## **Annual Report and Financial Statements for the year ended 31 December 2021**
|**CONTENTS**|Page|
|---|---|
|Trustees’ Annual Report|2 - 5|
|Independent Examiner’s Report|6|
|Receipts and Payments Account|7|
|Statement of Assets and Liabilities|8|
|Analysis of Receipts and Payments Account|10|
## **AFFCAD UK**
## **Annual Report and Financial Statements for the year ended 31 December 2021**
The Trustees of AFFCAD UK present their report and financial statements for the year ended 31 December 2021.
## **Reference and Administrative Information**
**Charity name:** AFFCAD UK **Charity registration no.:** 1165059 **Principal address:** 86-90 Paul Street London EC2A 4NE www.affcaduk.org
**Board of Trustees:**
During the year ended 31 December 2021 and up to the date of this report the following persons served as Trustees of the Charity:
Purvy Patel Elizabeth Parker Samantha Nakirya Nimrata Boora Parvez Bhatty Sarah Evans Nicola Bentham Kamran Rasheed Grant Morton Claire Mutono
Appointed 25/03/2020 Resigned 2 February 2021 Resigned 19 May 2021 Resigned December 2021 Appointed 01/04/2021, resigned 05/10/2022 Appointed 13 April 2021 Appointed 06/09/2022 Appointed 06/09/2022 Appointed 26/09/2022 Appointed 21/10/2022
**Independent Examiner:** AE Accountax Ltd 5[th] Floor Kingsgate House 62 High Street Redhill RH1 1SG **Bank:** National Westminster Bank Plc
Page 1
**AFFCAD UK**
## **Annual Report and Financial Statements for the year ended 31 December 2021**
## **Structure, Governance and Management**
The Charity was established on 6 January 2016 by a Deed of Constitution dated 11 March 2017 as a Charitable Incorporated Organisation.
The Charity is governed in law by the Trustees, who take overall financial and strategic planning responsibility.
## **Trustee Recruitment**
Trustees are recruited in accordance with constitutional guidelines, recruitment policy and equal opportunity legislation. The election of Trustees takes place at a properly convened meeting of the charity Trustees. Trustees are appointed for a 3 year term of office after being assessed for their suitability for the position through consideration of their skills, knowledge and experience.
## **Management**
The Trustee board have equal responsibility for the running and management of the Charity. Trustees will appoint amongst themselves a Chair and other such officers as may be necessary from time to time.
Day to day operation of the charity is managed by the Trustees as there are no employees. The Trustees source guidance and support from external professionals, such as IT and accountancy, as and when they identify a need.
Decisions regarding the management process are proposed and voted on at full Trustee meetings which are held regularly throughout the year.
## **Risk Management**
Risk assessment is carried out at least annually by the board and relevant policy and procedure introduced where necessary to limit any risk. The new Trustees have examined all areas of the Charity’s operations and have considered the major risks faced in each of the areas.
Page 2
**AFFCAD UK**
## **Annual Report and Financial Statements for the year ended 31 December 2021**
## **Objectives and Activities**
AFFCAD UK’s aim is to fundraise for projects implemented by Action for Fundamental Change and Development (AFFCAD) in Uganda. AFFCAD UK raises awareness of the problems faced and the solutions available to empower communities in less developed countries, specifically focusing on these issues within Uganda’s capital, Kampala.
## **Charitable Objectives**
The objects of the Charity are:
- To relieve and prevent poverty in Bwaise, Kampala’s largest and poorest slum area (Kawempe division of Kampala, Uganda);
- Provide financial support to schools and vocational training centres in Bwaise;
- Working together with AFFCAD (Action For Fundamental Change And Development) in Uganda to plan, manage and evaluate health initiatives, education and vocational training centres in Bwaise.
## **Public Benefit**
In shaping our objectives and planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a Charity (PB2)’ and the activities we provide fully reflect the purposes for which the Charity was set up.
## **Organisation Overview**
AFFCAD UK is a Charity based in London. It is a volunteer led charity set up to support young people and families living in extreme poverty in Uganda. We currently work in the community in Bwaise, where approx. 90,000 people live without access to services like clean water, shelter or sanitation. 65% of the population are aged between 16 and 25. We work closely with AFFCAD Uganda to provide quality, accessible education and training to the community in Bwaise
The main activities of the charity include:
- AFFCAD UK believe that education is one of the most important tools to alleviate poverty. We want to provide accessible, high-quality education to children living in Bwaise and empower them to support themselves out of poverty.
- Since 2013 AFFCAD and AFFCAD UK have run a community nursery and primary school in Bwaise. Previously called Excel Education Center, the school was rebuilt in 2019 on a more sustainable site and renamed AFFCAD School.
- AFFCAD School provides quality and accessible education to vulnerable children in Bwaise and offers free school places for the poorest children. We have also focused on ensuring that children who are HIV positive are able to attend without stigma.
Page 3
**AFFCAD UK**
## **Annual Report and Financial Statements for the year ended 31 December 2021**
## **Achievements and Performance**
Message from Acting Chair, Purvy Patel
During the last year, we have focused our limited resources on strengthening our governance, risk management and engagement with our primary stakeholders in Uganda.
As the charity is a volunteer-led organisation, the majority of our funding is used to support the children in Kampala. With the departure of the founding Trustees and other key individuals, our focus has been to strengthen our Trustee board and volunteer team to fill the knowledge gap. Our day-to-day challenge is the limited pool of resources available to deliver on key projects. With that in mind, we are part-way through a programme of recruiting a team of volunteer individuals.
In addition, we continue to improve our communication and processes between the U.K. and UG teams. This is necessary to enable all parties to track current and pipeline projects. One of our main priorities has been to improve our financial reporting and with the support of our new accountancy firm, we are progressing to the point of having access to timely management reports.
The marketing team is developing a Digital strategy for the organisation. I am pleased to inform you that last December we launched our new website and we now hope to re-engage with all stakeholders through our social media platforms.
To celebrate the 50th anniversary since the Ugandan Asian diaspora fled Uganda in 1972, we have launched a collection of testimonies “50 stories for 50 years” on our new website. This will commemorate the 50th anniversary of the exodus of Asians from Uganda. Our primary objective is to build a relationship with ex Ugandans and others who have settled in the U.K. and wish to support our good work.
This September, myself and Sarah Evans (trustee) visited our colleagues in Uganda to see first-hand the work they do. We were able to work with the team and better understand the environment they were working in post Covid. We established some action plans to support the school, vocational training centre and NGO.
To ensure the charity is fit for purpose, we have recently commissioned an independent audit of the organisation. The Trustees will review the recommendations and will also consider how we involve our beneficiaries and other stakeholders. Subject to the outcome of the visit by our Trustees to Uganda this summer, there may also be a requirement to review our Constitution.
AFFCAD U.K. must continue to adapt its focus to reflect a downturn in support or fundraising due to the current challenging climate. AFFCAD U.K. has limited reserves, however the Trustees are committed to change in order to make the charity sustainable. Our goal is to prepare a fundraising strategy when we have recruited additional Trustees and volunteers.
I would like to thank Fonthill for their continued support during Covid. Without their support our colleagues in Uganda would have struggled to maintain our services and support to the children in the community. In addition I would like to thank our long serving volunteers who have now departed the organisation. Liz, Sam, Nim, Fran, Tash and Lizzie.
Purvy Patel Acting Chair of Trustees 27 October 2022
Page 4
**AFFCAD UK**
## **Annual Report and Financial Statements for the year ended 31 December 2021**
## **Financial Review**
During the year we have received substantial grants of £52,460 for the running costs of the Excel school and the Vocational and Business Institute through AFFCAD Uganda. Donations received were around half of the previous year, with fundraising activities being minimal.
Alongside the general overheads, we have undertaken consultancy to strengthen our governance and relationships with AFFCAD Uganda and the school partnerships, as well as designing and launching our new website.
Overall the cash funds at the year-end were £14,082 (2020: £12,727) with unrestricted funds of £4,984 (2020: £6,869). The unrestricted funds are below the reserves level in the policy, but the Trustees are mindful of this.
## **Reserves Policy**
AFFCAD UK wish to retain a level of reserves that ensures financial stability and that will allow any financial commitments to be met. The trustees feel that having nine months of unrestricted expenditure held in reserves will ensure the above and therefore endeavour to keep funds at a minimum of this level at all times.
## **Trustees’ responsibilities in relation to the Financial Statements**
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales 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 of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2019 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with applicable regulations and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees have approved the trustees’ report above, and was signed on behalf of the charity’s trustees by:
Purvy Patel (Acting Chair of Trustees) ____________________
Dated:
28 October 2022
____________________
Page 5
**AFFCAD UK**
## **Annual Report and Financial Statements For the year ending 31 March 2021**
## **Independent Examiner's Report to the Trustees of AFFCAD UK**
I report to the trustees on my examination of the accounts of the charity for the year ended 31 December 2021, which are set out on pages 7 to 10.
## **Responsibilities and basis of report**
As the charity trustees you are responsible for the preparation of the accounts in accordance with the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts as required under section 145 of the 2011 Act and 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.
## **Examiner’s report**
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the company 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 you as 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 examiners statement**
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:
- (1) accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
- (2) that accounts do not accord with those records; or
- (3) that 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 the 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.
Bim Ewetade FCCA, BA(hons), AFA, MIPA AE Accountax Ltd 5[th] Floor Kingsgate House 62 High Street Redhill RH1 1SG Date:
28 October 2022
Page 6
## **AFFCAD UK**
## **Receipts & Payments Account for the year ended 31 December 2021**
|**Note**
**RECEIPTS**
**1**
Grants
Donations
Fundraising activities
Other income
**Total receipts**
**PAYMENTS**
**1**
Fundraising
Charitable Activities
General overheads
**Total payments**
**Net receipts/(payments)**
Cash funds @ 31.12.2020
**2**
**Cash funds @ 31.12.2021**
**2**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**-**
**52,460**
**52,460**
**4,171**
**1,105**
**5,275**
**50**
**713**
**763**
**243**
**-**
**243**
**4,463**
**54,277**
**58,740**
**50**
**-**
**50**
**2,000**
**51,036**
**53,036**
**4,298**
**1**
**4,299**
**6,348**
**51,037**
**57,385**
**(1,885)**
**3,240**
**1,355**
6,869
5,858
12,727
**4,984**
**9,098**
**14,082**
**2021**|Unrestricted
funds
Restricted
funds
Total
2020|
|---|---|---|
|||-
10,035
10,035
7,362
2,837
10,199
4,554
15,850
20,404
138
-
138|
|||12,054
28,722
40,776|
|||588
-
588
4,597
25,354
29,951
-
-
-|
|||5,185
25,354
30,539|
|||6,869
3,368
10,237
-
2,490
2,490|
|||6,869
5,858
12,727|
Page 7
**AFFCAD UK**
## **Statement of Assets and Liabilities as at 31 December 2021**
|**CASH FUNDS**
Cash at bank
Cash at PayPal (GBP)
**Total cash funds & other**
**monetary assets**
**LIABILITIES**
Independent Examination
Suppliers
AFFCAD Uganda|**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**4,337**
**9,069**
13,405
**648**
**30**
677
**4,984**
**9,098**
**14,082**
**696**
**-**
**696**
**247**
**-**
**247**
**-**
**5,072**
**5,072**
**943**
**5,072**
**6,015**
**2021**|Unrestricted
funds
Restricted
funds
Total
6,869
5,858
12,727
-
-
-
2020|
|---|---|---|
|||6,869
5,858
12,727|
|||-
-
-
-
-
-|
|||-
-
-|
28/10/2022
The receipts & payments accounts were approved by the Trustees on …........................................... and were signed on their behalf by:
Sarah Evans Trustee
Page 8
## **for the year ended 31 December 2021**
## 1. **Detailed Receipts & Payments Account**
|**RECEIPTS**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**£**
**£**
**£**
Grants
**-**
**52,460**
**52,460**
Donations
**4,171**
**1,105**
**5,275**
Fundraising activities
**50**
**713**
**763**
Amazon Smile
**-**
Easy Fundraising
**243**
**-**
**243**
**Total receipts**
**4,463**
**54,277**
**58,740**
**PAYMENTS**
Fundraising costs
**50**
**-**
**50**
Direct project costs
**2,000**
**51,036**
**53,036**
**2,050**
**51,036**
**53,086**
**_General overheads_**
Admin costs
**228**
**-**
**228**
Audit and accountancy fees
**516**
**-**
**516**
Bank fees
**7**
**-**
**7**
Consulting
**1,350**
**-**
**1,350**
Insurance
**511**
**-**
**511**
IT Software and Consumables
**43**
**-**
**43**
PayPal fees
**16**
**1**
**17**
Website
**1,627**
**-**
**1,627**
**4,298**
**1**
**4,299**
**Total payments**
**6,348**
**51,037**
**57,385**
**Net receipts/(payments)**
**(1,885)**
**3,240**
**1,355**
**2021**|Unrestricted
funds
Restricted
funds
Total
2020|
|---|---|
||**£**
**£**
**£**
-
10,035
10,035
7,362
2,837
10,199
4,554
15,850
20,404
21
-
21
117
-
117|
||**12,054**
**28,722**
**40,776**|
||588
-
588
4,597
25,354
29,951|
||5,185
25,354
30,539
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|
||- - -|
||**5,185**
**25,354**
**30,539**|
|||
||**6,869**
**3,368**
**10,237 **|
Page 9
## **AFFCAD UK**
## **Notes to the Receipts & Payments Accounts for the year ended 31 December 2021**
|**2. Funds analysis**
Restricted funds
Unrestricted funds
Total funds
**3. Restricted funds**
Fonthill - Ugandan school
Fonthill - ABVI
Pauline's school fees
Easter food packages
School breakfasts
Covid19 response projects
Fundraising - Ugandan school
Fundraising - ABVI|B/fwd
1 Jan 2021
Income
Expenditure
C/fwd
31 Dec 2021|
|---|---|
||5,858
54,277
51,037
9,098
6,869
4,463
6,348
4,984|
||**12,727**
**58,740**
**57,385**
**14,082**|
||B/fwd
1 Jan 2021
Income
Expenditure
C/fwd
31 Dec 2021|
||-
23,337
19,580
3,758
5,858
29,123
29,669
5,312
-
180
151
29
-
500
500
-
-
350
350
-
-
75
75
-
-
613
613
-
-
100
100
-|
||**5,858**
**54,277**
**51,037 **
**9,098**|
## **Fonthill - Ugandan school fees**
Funding for the running costs of the AFFCAD Uganda Excel school.
## **Fonthill - ABVI**
Funding for the running costs of the Vocational and Business Institute.
## **Restricted Donations**
Donations and fundraising have been received specifically for:
The school fees for Pauline, a local girl in Uganda Easter food packages for the school School breakfasts Covid 19 response projects Running costs for the Ugandan school and the Vocational and Business Institute
## **4. Related Parties**
There are no related party transactions in the year to 31 December 2021 or 31 December 2020.
Page 10