2023-04-05-accounts

Charity registration number 1172092

DH FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 05 APRIL 2023

DH FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees
	Mohamad Ullah (Chair)
	Imran Nabi
	Mohammed Mostak Ahmed
	Homuyan Kamal
	Abdul Rouf
Charity number	1172092
Principal address	DH Centre
	31 Church Road
	Manor Park
	London
	E12 6AD
Accountants	Grip Business Consultancy Ltd
	101 Lockhurst Lane
	Coventry
	CV6 5SF
	HSBC
Bankers	Account Name: DH Foundation
	Account Number: 62690977
	Sort Code: 400244

DH FOUNDATION

CONTENTS

	Page
Trustees' report	1-4
Independentexaminers’report	5
Statement of financial activities	6
Balance sheet	7
Notes to the financial statements	8 - 16

DH FOUNDATION

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

Introduction

The Trustees present their report along with the consolidated financial statements of the Charity for the year ended 5 April 2023. The financial statements have been prepared based on the accounting policies set out in the notes to the financial statements and comply with the charity’s governing document.

About DH Foundation

DH Foundation is a UK registered charity (UK registered charity no. 1172092), established in 1997 determined to make a difference to the lives of those afflicted by poverty and suffering in Bangladesh. DH Foundation implements a range of charitable programmes aimed at not only providing immediate relief to the poor and needy but also address ways in which the Charity’s beneficiaries can become economically active and self-sufficient in the long term. The Organisation takes a holistic view to tackling poverty and its actions and activities encompass all the essential requirements of human life such as food, water, shelter, clothing, medicine, education, training and employment.

Objectives:

The Charity’s objectives are –

• The relief of poverty and the improvement of the conditions of life in socially and disadvantaged communities.

• The promotion of sustainable means of achieving economic growth and regeneration.

• The perseveration, conservation and the protection of the environment and the prudent use of resources.

How We Work

The Charity delivers its charitable aims in two ways:

• Through direct delivery in areas where we have own personnel; and

• Through grant making, using our partner organisations.

Work is carried out by partner organisations is especially useful in areas where the charity has no established infrastructure for managing personnel and operations or where it provides a more economical approach than using our own teams. We decide on which areas of Bangladesh we work, taking into account the following factors:

• Incidence of natural disasters;

• Data on levels of poverty and vulnerability;

• Honouring our existing commitments to prevent or relieve poverty and suffering;

• Information from our partners about areas of deprivation and need;

• Availability of local partners with their willingness and capacity to work with us; and

• • The degree of stability, safety and security in the areas of operation.

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DH FOUNDATION

We have an ethical stance where we seek to provide our programmes without detriment to the local economy or community. To this end, where beneficial, we seek to locally source labour, materials and supplies. This approach assists local businesses and the local economy.

Governance and Management

The board of trustees aim to ensure the critical functions of the Charity have access to expertise from a nonexecutive level. The board of trustees is eager to build further competence and over the next 12-24 months is seeking to build a network of specialist advisors to provide further support to the trustees in management and programmes.

The governance of the charity is supported through monthly board of trustees meetings, which ensures all fiduciary responsibilities are completed and support is given to the delivery of the Charity’s strategic and operational plan.

Achievement and Performanc

2023 was a year of substantial progress from a programme’s perspective. The key achievements for the Charity during the year are:

• During Ramadan, 100,000 needy and vulnerable people were supported through the Charity’s Ramadan food aid programme.

• Over 1,000 orphans were given Eid gifts on the occasion of Eid ul Fitr and Eid ul Adha.

• As part of the Charity’s WASH (water, sanitation and hygiene) programme, 30 deep water wells were installed in communities which face water scarcity.

• The Charity supported over 90 new shelter constructions in communities affected by floods.

• During the Charity’s annual Winter programme, 4,500 winter blankets were distributed with a particular focus on vulnerable families living on streets.

• 40 students graduated from Hifz and educational programmes supported by the Charity.

• The Charity supported over 20 mosque constructions.

• 500 tonnes of rice were distributed to poor and needy families facing food scarcity and poverty.

• The Charity also provided emergency food assistance to thousands of people affected by floods.

Use of volunteers

Volunteers are an important resource in our work. Volunteers are involved in most of our activities and we have over 20 people as well as our trustees all giving their time freely. Volunteers are trained in their roles and are provided expenses and are provided assistance where and when required. We regularly encourage people from the community to get involved and offer their support however big or small.

Financial Review

In 2023, the Charity’s total income for the year was £ 773,662 (2022: £597,458), representing 29.49% increase on

last year.

• Donations and legacies: The total donations received during the year were £ 773,662 (2022: £597,458), representing an increase in donation from the prior year. There is encouraging progress reflecting the work done to increase awareness of the Charity and its impactful work in Bangladesh. In 2024, the Charity will focus on building upon this further in addition to working on increasing the level of regular donations.

• Charitable expenditure: these include cost of fundraising activities and operations. Overall the expenditure increased by 275% to £118,896 (2022: £31,705), driven by the increase in activities. Aid payments increased by 16% due to the Charity increasing its activities in Bangladesh supporting needy

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DH FOUNDATION

beneficiaries through various projects such as the construction of water wells, food aid, shelters and emergency relief.

• The Charity’s total operational expenditure, including cost of fundraising during 2023 was £780,970.

Reserves Policy

DH Foundation’s board of trustees has determined that a minimum of 3 months’ operational expenditure be maintained as reserves. The Board reviews the reserves policy annually.

At year-end, DH Foundation funds amount to £12,870.

Plans for the Future

The Charity will continue to meet its stated objectives over the next few years and will increase its focus on longterm sustainable development and economic empowerment projects.

Risk Management

All significant activities undertaken are subject to a risk review as part of the initial activity assessment and implementation. Major risk are identified and ranked in terms of their potential impact and likelihood.

The Charity, guided by external consultants seeks to develop its culture of risk identification and management further over the short-term future.

Major risks, for this purpose, are those that may have a significant effect on:

• Operational performance, including risks to our personnel and volunteers;

• Financial sustainability, including stability and security of funds;

• Achievement of our aims and objectives; or

• Meeting the expectations of our beneficiaries and/or supporters

The trustees review these risks on an ongoing basis and satisfy themselves that adequate systems and procedures

are in place to manage identified risks. Where appropriate, risks are mitigated/managed through insurance policies.

The following framework is central to ensuring adequate risk assurance:

• Regular monitoring of major risks and development of action plans;

• Embedding risk identification and assessment within operating procedures;

• A clear structure of delegated authority and control;

• Review of key systems and procedures through internal arrangements;

• Income and profit targets for our fundraising activities;

• Maintaining reserves in line with set policies; and

• Regular summary reports on risk management to the Board of Trustees which are discussed in meetings of the Board of trustees an a resolution put in place to manage those risks.

Trustees’ Responsibilities Statement

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).

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DH FOUNDATION

The law applicable to charities in England and Wales require 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 applicable Charities SORP;

• make judgements and accounting estimates that are reasonable and product;

• state whether applicable UK 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 appropriate to presume that the charity will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.

Trustees Responsibilities

Each of the persons who is a trustee at the date of approval of this report confirmed that:

• as they are aware, there is no relevant information of which the Charity’s accountants are unaware and

• they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant examined information and to establish the Charity’s accountants aware of that information.

The trustees’ annual report was approved on 31[st] December 2023 and signed of behalf of the Board of Trustees by:

Mohammed Ullah

Chair of the Board of Trustees

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DH Foundation

Independent Examiners Report

Independent Examiner's Report to the trustee of DH Foundation

I report to the trustees on my examination of the financial statements of DH Foundation for the year ended 5 April 2023.

Responsibilities and basis of report

As the charity's trustee you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the charity's financial statements carried out 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.

Independent examiner's statement

As the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination by being a qualified member of Chartered Institute Management Accountants.

I have completed my examination. I can 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:

• the accounting records were not kept in respect of the charity as required by section 130 of the Act; or

• the financial statements do not accord with those records; or

• the financial statements do not comply with the applicable requirements concerning the form and content of financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination.

We have examined the financial statements of the charity and found that the charity has lost £30,000 due to poor internal control. We strongly recommend that the charity adopts all the control measures as per the Charity Commission guidelines in the UK to prevent such losses in the future.

I have no other 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

Grip Business Consultancy Ltd

101 Lockhurst Lane Coventry CV6 5SF 05 April 2023

Page 5

DH Foundation Statement of Financial Activities

for the year ended 5 April 2023

for the year ended 5 April2023
Notes Income and endowments from: Donationsandlegacies 3 Total Expenditure on: Raisingfunds 4 Charitableactivities 5 Other 6 Total Netgainsoninvestments Net expenditure Transfersbetweenfunds Net expenditure before other gains/(losses) Othergainsandlosses Net movementinfunds Reconciliation of funds: Totalfundsbroughtforward Totalfundscarriedforward		Unrestricted funds	Totalfunds	Totalfunds
		2023	2023	2022
		£	£	£
		773,662	773,662	597,458
		773,662	773,662	597,458
		34,653	34,653	18,220
		662,074	662,074	569,564
		84,243	84,243	13,485
		780,970	780,970	601,269
		-	-	-
		(7,308)	(7,308)	(3,811)
		-	-	-
		(7,308)	(7,308)	(3,811)
		(7,308)	(7,308)	(3,811)
		20,178	20,178	23,989
		12,870	12,870	20,178

Page 6

DH Foundation Balance Sheet

at 5 April 2023

at 5 April2023
Charity No.1172092 Current assets Cashat bankandin hand Netcurrent assets Totalassets lesscurrentliabilities Net assetsexcludingpension asset orliability Totalnet assets Thefundsofthecharity Restrictedfunds 8 Unrestrictedfunds 8 Generalfunds Reserves 8 Totalfunds Approved by the trusteeson 05 April2023 Andsigned on their behalfby:	2023 £ 12,870 12,870 12,870 12,870 12,870 12,870 12,870 12,870 12,870	2022 £ 20,178
		20,178
		20,178 20,178
		20,178
		20,178
		20,178
		20,178
		20,178

Mohammed Ullah

Chair of the Board of Trustees 05 April 2023

Page 7

DH Foundation Notes to the Accounts

• for the year ended 5 April 2023

• 1 Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic if Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

• Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.

Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values. Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.

Income

• Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.

Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA. Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income. Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material. Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year.

assets

Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets

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DH Foundation Notes to the Accounts

Expenditure

Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs.

Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid.

Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.

Other expenditure These are support costs not allocated to a particular activity.

Taxation

The charity is exempt from tax on its charitable activities.

Freehold investment property

Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Trade and other debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

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DH Foundation Notes to the Accounts

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period.

Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.

All exchange differences are are taken into account in arriving at net income/expenditure.

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The

corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the charity pays fixed contributions into a separate entity. Once the contributions have been paid the charity has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the charity in independently administered funds.

Receipt of donated goods, facilities and services

All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.

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DH Foundation

Notes to the Accounts

2 Statement of Financial Activities - prior year

Income and endowmentsfrom: Donationsandlegacies Total Expenditure on: Raisingfunds Charitableactivities Other Total Netincome Netincome before other gains/(losses) Othergainsandlosses: Net movementinfunds Reconciliation of funds: Totalfundsbroughtforward Totalfundscarriedforward 3 Incomefrom donationsandlegacies 4 Expenditure on raising funds Fundraising tradingcosts	Unrestricted £ 773,662 773,662 Unrestricted £ 34,653 34,653	Unrestricted funds 2022 £ 597,458 597,458 18,220 569,564 13,485 601,269 (3,811) (3,811) (3,811) 23,988 20,177 Total 2023 £ 773,662 773,662 Total 2023 £ 34,653 34,653	Totalfunds 2022 £ 597,458 597,458 18,220 569,564 13,485 601,269 (3,811) (3,811) (3,811) 23,988 20,177 Total 2022 £ 597,458 597,458 Total 2022 £ 18,220 18,220

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DH Foundation Notes to the Accounts

DHFoundation Notesto the Accounts
5 Expenditure oncharitable activities Expenditureoncharitable activities Governancecosts 6 Other expenditure 7 Staffcosts Salariesand wages No employee received emolumentsin excess 8 Movementinfunds Restrictedfunds: Unrestrictedfunds: Generalfunds Totalfunds 9 Analysisofnet assetsbetweenfunds Netcurrentassets Employee costs Premises costs General administrative costs Legal and professional costs Exceptional costs	of£60,000. At 6 April 2022 20,178 20,178	Unrestricted £ Unrestricted £ 30,000 50,031 1,000 2,862 350 84,243 2023 49,780 49,780 Incoming resources (including other gains/losses ) £ 773,662 773,662 662,074 662,074	Total 2023 £ Total 2023 £ 30,000 50,031 1,000 2,862 350 84,243 Resources expended £ (780,970) (780,970) Unrestricted funds £ 12,870 12,870 662,074 662,074	Total 2022 £ 569,564
				569,564
				Total 2022 £ - 1,903 4,210 872 6,500
				13,485
				2022 -
				-
				At 5 April 2023 £ 12,870
				12,870
				Total £ 12,870
				12,870

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DH Foundation Notes to the Accounts

10 Reconciliation of net debt

Cashandcash equivalents Net debt	At 6 April 2022 £	Cashflows £	At 5 April 2023 £
	20,178	(7,308)	12,870
	20,178 20,178	(7,308) (7,308)	12,870
			12,870

Page 13

DH Foundation Statement of Cash flows

for the year ended 5 April 2023

Cashflowsfrom operatingactivities Net expenditure perStatement ofFinancialActivities Netcash usedin operatingactivities Netcashfrominvestingactivities Netcashfromfinancingactivities Net decreaseincash andcash equivalents Cash andcash equivalentsat the beginningofthe year Cash andcash equivalentsat the end ofthe year	2023 £ (7,308) (7,308) - - (7,308) 20,178 12,870	2022 £ (3,811)
		(3,811)
		-
		-
		(3,811)
		23,988
		20,177
Componentsofcash andcash equivalents
Cashand bankbalances	12,870	20,178
	12,870	20,178

Page 14

DH Foundation Detailed Statement of Financial Activities

for the year ended 5 April 2023

Income and endowmentsfrom: Donationsandlegacies Total income and endowments Expenditure on: Costsofother tradingactivities Totalofexpenditure on raising funds Charitableactivities Totalofexpenditure oncharitable activities Employeecosts Salaries/wages Stafftraining Premises costs Rent Generaladministrativecosts, includingdepreciationand amortisation Sundry expenses Legaland professionalcosts Solicitor'sfees Totalofexpenditure ofothercosts Totalexpenditure Netgainsoninvestments Exceptional costs	Unrestricted funds 2023 £ 773,662 773,662 773,662 30,000 30,000 49,780 251 50,031 1,000 1,000 2,862 2,862 350 350 84,243 780,970 - 662,074 662,074 662,074 34,653 34,653 34,653	Totalfunds 2023 £ 773,662 773,662 773,662 30,000 30,000 49,780 251 50,031 1,000 1,000 2,862 2,862 350 350 84,243 780,970 - 662,074 662,074 662,074 34,653 34,653 34,653	Totalfunds 2022 £ 597,458 597,458 597,458 18,220 569,564 - - - 1,903 1,903 4,210 4,210 872 872 6,500 6,500 13,485 601,269 - 569,564 569,564 18,220 18,220

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DH Foundation Detailed Statement of Financial Activities

Net expenditure Net expenditure before other gains/(losses) Other Gains Net movementinfunds Reconciliation of funds: Totalfundsbroughtforward Totalfundscarriedforward	(7,308) (7,308) - (7,308) 20,178 12,870	(7,308) (7,308) - (7,308) 20,178 12,870	(3,811)
			(3,811) -
			(3,811)
			23,989
			20,178

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