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: - Monthly trustee meetings with formal attendance protocols and documented decisionmaking - Comprehensive policy framework covering financial controls, conflicts of interest, and risk management - Enhanced documentation procedures for all decisions and transactions - Regular trustee training program - Professional support from specialist advisors for governance matters - Engagement of Chartered Management Accountants for financial oversight **1** **DH FOUNDATION** ## **TRUSTEES' ANNUAL REPORT** ## **FOR THE YEAR ENDED 5 APRIL 2024** ## **The board of trustees meets monthly with a structured agenda covering:** - Declaration of interests - Financial reviews - Policy compliance updates - Project progress reports - Risk assessments - Action point tracking ## **Objectives and Activities** ## **The charity's objectives are:** - The relief of poverty and improvement of living conditions in socially disadvantaged communities - The promotion of sustainable means of achieving economic growth and regeneration - The preservation, conservation and protection of the environment and prudent use of resources ## **How We Work** The charity delivers its charitable aims through: - Direct delivery in areas where we have own personnel - Grant-making using partner organisations ## **We select areas of operation based on:** - Incidence of natural disasters - Data on poverty and vulnerability levels - Existing commitments to prevent or relieve poverty - Partner information about areas of deprivation - Availability of capable local partners - Stability and security of operational areas **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:** - Supported 30,000 needy and vulnerable people through our Ramadan food aid programme - Provided Eid gifts to over 200 orphans - Installed 9 deep water wells in communities facing water scarcity - Supported over 10 new shelter constructions in flood-affected areas - Distributed 300 tonnes of rice to families facing food scarcity - Provided emergency food assistance to flood-affected communities 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: - Total income decreased by 63% to £289,550 (2023: £773,662) - Total expenditure reduced to £267,006 (2023: £780,970) - Net movement in funds was a surplus of £22,544 (2023: deficit £7,308) 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 - Regular monitoring of income trends and expenditure - Maintenance of adequate reserves - Enhanced budgeting and forecasting procedures 2. Operational Delivery - Enhanced controls over international transfers - Improved documentation procedures - Regular review of project effectiveness 3. Regulatory Compliance - Implementation of enhanced governance framework - Regular trustee training - 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: - Current operational capabilities - Available resources and future funding prospects - Ongoing charitable commitments - Regulatory obligations and compliance requirements **4** **DH FOUNDATION** ## **TRUSTEES' ANNUAL REPORT** ## **FOR THE YEAR ENDED 5 APRIL 2024** ## **During this period of review, the trustees remain committed to:** - Maintaining robust governance - Ensuring proper completion of existing projects - Protecting beneficiary interests - Full compliance with regulatory requirements ## **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** - 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 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