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← Dh Foundation

2024-04-05-accounts

Charity registration number 1172092

DH FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR

THE YEAR ENDED 05 APRIL 2024

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
1-6
Independent examiners’ report 7 - 8
Statement of financial activities 9
Balance sheet 10
Notes to the financial statements 11 - 18

DH FOUNDATION

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 5 APRIL 2024

Introduction

The Trustees present their report along with the financial statements of DH Foundation for the year ended 5 April 2024. 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, applicable charity law, and the Charities SORP (FRS 102).

About DH Foundation

DH Foundation is a UK registered charity (UK registered charity no. 1172092), established in 1997 to make a difference to the lives of those afflicted by poverty and suffering in Bangladesh. The charity implements charitable programmes aimed at providing both immediate relief and long-term sustainable development support to beneficiaries.

Structure, Governance and Management

Legal Status

The charity is registered with the Charity Commission for England and Wales (registration number 1172092) and governed by its trust deed.

Governance

Following receipt of an Official Warning from the Charity Commission in November 2023, the charity has significantly enhanced its governance framework. Key improvements implemented include:

1

DH FOUNDATION

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 5 APRIL 2024

The board of trustees meets monthly with a structured agenda covering:

Objectives and Activities

The charity's objectives are:

How We Work

The charity delivers its charitable aims through:

We select areas of operation based on:

2

DH FOUNDATION

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 5 APRIL 2024

Achievements and Performance

2024 was a challenging year for the charity, during which we:

These achievements were delivered while implementing significant operational improvements and enhanced controls.

Financial Review

Financial Performance

The charity experienced substantial changes in its financial position during 2024:

The reduction in income primarily resulted from decreased donor support following operational challenges and implementation of enhanced governance procedures. Despite this reduction, the charity maintained its core charitable activities while implementing improved operational controls.

Reserves Policy

DH Foundation's board of trustees has determined that a minimum of 3 months' operational expenditure should be maintained as reserves. At year-end, the charity's funds amounted to £35,414, which meets this requirement based on current reduced operational levels.

3

DH FOUNDATION

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 5 APRIL 2024

Principal Risks and Uncertainties

The trustees have identified and manage the following key risks:

  1. Financial Sustainability

  2. Regular monitoring of income trends and expenditure

  3. Maintenance of adequate reserves

  4. Enhanced budgeting and forecasting procedures

  5. Operational Delivery

  6. Enhanced controls over international transfers

  7. Improved documentation procedures

  8. Regular review of project effectiveness

  9. Regulatory Compliance

  10. Implementation of enhanced governance framework

  11. Regular trustee training

  12. Professional advice on compliance matters

Future Plans

Following careful consideration of the charity's operational capabilities and sustainability, the trustees are evaluating options for the charity's future, including a potential orderly winddown of operations. This strategic review considers:

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DH FOUNDATION

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 5 APRIL 2024

During this period of review, the trustees remain committed to:

Structure, Governance and Management

Trustee Recruitment and Training

The charity has implemented regular training programmes for all trustees. Professional advice is sought when required on matters where specific expertise is needed.

Reference and Administrative Details

Charity Name: DH Foundation

Charity Registration Number: 1172092

Principal Address: 31 Church Road, Manor Park, London, E12 6AD

Trustees who served during the year:

Mohamad Ullah (Chair)

Imran Nabi

Mohammed Mostak Ahmed

Homuyan Kamal

Abdul Rouf

Professional Advisors:

Accountants: Grip Business Consultancy Ltd

Bankers: HSBC Bank plc

5

DH FOUNDATION

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 5 APRIL 2024

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. The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity's state of affairs and of its incoming resources and application of resources for that period.

Approved by the trustees on 31st December 2024 and signed on their behalf by:

Mohammed Ullah

Chair of the Board of Trustees

6

DH FOUNDATION

INDEPENDENT EXAMINER’S 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 2024.

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.

Going Concern and Future Operations

The trustees are actively assessing the charity’s future due to reduced donor support and operational challenges in 2024. Despite a sharp decline in income from £773,662 in 2023 to £289,550 in 2024, the charity remains solvent with net assets of £35,414 as of 5 April 2024.

While the accounts have been prepared on a going concern basis, plans for an orderly wind-down are being considered. The charity will continue meeting its obligations and maintaining controls throughout this period. If closure proceeds, trustees will ensure charitable commitments are fulfilled, projects are handled responsibly, and remaining funds are distributed in compliance with Charity Commission guidance.

Governance Changes

In response to an Official Warning from the Charity Commission, the charity implemented governance improvements in 2024. These include strengthened financial controls, new overseas payment procedures, professional advisory support, and policies on financial management, conflicts of interest, and anti-money laundering. Trustee decision-making processes have been enhanced, alongside a regular trustee training programme. A historic issue of unauthorised trustee remuneration was resolved with full repayment of £4,577.42 in December 2024. The charity now operates under rigorous internal reviews and professional oversight.

Analysis of Charitable Funds

The charity’s funds remain unrestricted, providing flexibility to achieve objectives while ensuring robust controls over their use. Although the trustees are evaluating potential wind-down costs, no formal decision had been made by the balance sheet date, and no provision has been recognised in these accounts.

7

DH FOUNDATION

INDEPENDENT EXAMINER’S REPORT

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEE OF DH FOUNDATION

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.

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 financial statements to be reached.

Grip Business Consultancy Ltd

101 Lockhurst Lane

Coventry

CV6 5SF

05 April 2024

8

DH Foundation Statement of Financial Activities for the year ended 5 April 2024

Notes
Income and endowments
from:
Donations and legacies
3
Total
Expenditure on:
Raising funds
4
Charitable activities
5
Other
6
Total
Net gains on investments
Net income/(expenditure)
Transfers between funds
Net income/(expenditure)
before other gains/(losses)
Other gains and losses
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Total funds Total funds
2024 2023
£ £
289,550 773,662
289,550 773,662
27,071 65,562
202,470 631,165
37,465 84,243
267,006 780,970
- -
22,544 (7,308)
- -
22,544 (7,308)
22,544 (7,308)
12,870 20,178
35,414 12,870

9

DH Foundation Balance Sheet at 5 April 2024

at 5 April 2024
Charity No. 1172092
Current assets
Cash at bank and in hand
Net current assets
Total assets less current liabilities
Net assets excluding pension asset or liability
Total net assets
The funds of the charity
Total funds
Approved by the trustees on 05 April 2024
And signed on their behalf by:		 2024
£
35,414
35,414
35,414
35,414
35,414
35,414
35,414		 2023
£
12,870
12,870
12,870
12,870
12,870
12,870
12,870

Mohammed Ullah Chair of the Board of Trustees 05 April 2024

10

DH Foundation Notes to the Accounts

for the year ended 5 April 2024

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

Income

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

11

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.

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.

12

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.

13

DH Foundation

Notes to the Accounts

2 Statement of Financial Activities - prior year

2
Statement of Financial Activities - prior year
Income and endowments from:
Donations and legacies
Total
Expenditure on:
Raising funds
Charitable activities
Other
Total
Net income
Net income before other
gains/(losses)
Other gains and losses:
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
3
Income from donations and legacies
4
Expenditure on raising funds
Fundraising trading costs		 Unrestricted
funds
2023
£
773,662
773,662
65,562
631,165
84,243
780,970
(7,308)
(7,308)
(7,308)
20,178
12,870
Total
2024
£
289,550
289,550
Total
2024
£
27,071
27,071		 Total funds
2023
£
773,662
773,662
65,562
631,165
84,243
780,970
(7,308)
(7,308)
(7,308)
20,178
12,870
Total
2023
£
773,662
773,662
Total
2023
£
65,562
65,562

14

DH Foundation Notes to the Accounts

5 Expenditure on charitable activities

Expenditure on charitable
activities
Governance costs
6
Other expenditure
Employee costs
Premises costs
General administrative costs
Legal and professional costs
7
Staff costs
Salaries and wages
No employee received emoluments in excess of £60,000.
8
Reconciliation of net debt
Cash and cash equivalents
Net debt		 2024
32,797
32,797
At 6 April
2023
£		 Total
2024
£
202,470
202,470
Total
2024
£
-
32,797
1,674
660
2,334
37,465
Cash flows
£		 Total
2023
£
631,165
631,165
Total
2023
£
30,000
50,031
1,000
2,862
350
84,243
2023
49,780
49,780
At 5 April
2024
£
12,870 22,544 35,414
12,870
12,870		 22,544
22,544		 35,414
35,414

15

DH Foundation Statement of Cash flows for the year ended 5 April 2024

Cash flows from operating activities
Net income/(expenditure) per Statement of Financial Activities
Net cash provided by/(used in) operating activities
Net cash from investing activities
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2024
£
22,544
22,544
-
-
22,544
12,870
35,414		 2023
£
(7,308)
(7,308)
-
-
(7,308)
20,178
12,870
Components of cash and cash equivalents
Cash and bank balances 35,414 12,870
35,414 12,870

16

DH Foundation Detailed Statement of Financial Activities

for the year ended 5 April 2024

Income and endowments from:
Donations and legacies
Total income and endowments
Expenditure on:
Costs of other trading activities
Total of expenditure on raising
funds
Charitable activities
Total of expenditure on charitable
activities
Other expenditure
Salaries/wages
Staff training
Rent
General administrative costs,
including depreciation and
amortisation
Sundry expenses
Legal and professional costs
Solicitor's fees
Total of expenditure of other costs
Total expenditure
Net gains on investments
Net income/(expenditure)		 Total funds
2024
£
289,550
289,550
289,550
27,071
27,071
27,071
202,470
202,470
202,470
-
-
32,797
-
32,797
1,674
1,674
660
660
2,334
2,334
37,465
267,006
-
22,544		 Total funds
2023
£
773,662
773,662
773,662
65,562
65,562
65,562
631,165
631,165
631,165
30,000
30,000
49,780
251
50,031
1,000
1,000
2,862
2,862
350
350
84,243
780,970
-
(7,308)

17

DH Foundation Detailed Statement of Financial Activities

DH Foundation
Detailed Statement of Financial Activities
Net income/(expenditure) before
other gains/(losses)
Other Gains
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 22,544
-
22,544
12,870
35,414		 (7,308)
-
(7,308)
20,178
12,870

18