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2020-12-31-accounts

Charity Registration No. 1176872

Company Registration No. 10808150 (England and Wales)

SOURCE OF HOPE LIMITED

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

SOURCE OF HOPE LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr D Taylor Mr J R Parker Mr T A Wright Charity number 1176872 Company number 10808150 Registered office 127 Moss Lane Hesketh Bank PR4 6AE Independent examiner Oliver Grills FCA J A Fell & Company 40 Hoghton Street Southport PR9 0PQ

SOURCE OF HOPE LIMITED

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 10

SOURCE OF HOPE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements 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 financial statements and comply with the charity's memorandum and articles , the Companies Act 2006 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2016) . The current accounting period has been shortened to end on 31 December 2018 in order for the accounts to follow a calendar year.

Objectives and activities

The objects of the charity is to prevent or relieve poverty in any part of the wider world, to support orphans and displaced people by providing grants, the possibility of an education, and necessary items, and to work with other organisations or Charities whose goal is the same.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. The trustees confirm that they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties.

Achievements and performance

We have continued our work in 2020, supporting the “Children’s Ministry Team”. In January and February, for 3 weeks we visited Kenya. We visited the children’s schools in the three slum areas where they are situated. We were pleased with the new school that we built in Korogocho, the “Lucy Centre” but was concerned about the lack of ventilation. This has been greatly helped by the system we installed later in 2020.

We travelled extensively to our 11 training centres situated around Kenya, encouraging our trainers, and being

involved with the local training groups.

As mentioned in our 2019 report we held a group training at Joska, near Nairobi. Our eleven trainers were supported to attend, several local officials and interested people also attended.

We were encouraged when a charity that works in Uganda, that supports children sent several representatives to learn this way of farming.

Mr Jackson Kasolo from Zambia was able to attend and lecture our group from his many years of experience of training and growing using the principles of FGW on his farm in Zambia.

It was our intention to make 2 further visits in 2020, but like many, our plans were scuppered in 2020 with

Covid.

Even though travel at times in Kenya was limited with government restrictions, our CMT team was able to continue their work online, and later they were able to travel to the centres. We are pleased to say we have seen continued growth.

In July the idea was proposed by Mr Joseph Mulwa to establish at one of our training areas a“Farming Conservation Centre”. Four acres of land was fenced, a small home was built at the entrance so the Centre would have security. An existing water pump was updated and a covered area was built to be used for training. Crops were planted in October and we are confident of seeing good results.

SOURCE OF HOPE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Financial review

The results for the year and the state of the Charity's affairs as at 31 December 2020 are set out in the financial statements on page 4 to 7.

Our income for the year amounted to £63,823 (2019 - £105,431), with expenditure of £67,961 (2019 - £85,635) leaving a net deficit of £4,138 (2019 - surplus £19,796). At 31 December 2020 total funds stood at £26,668 (2019 - £30,806).

The Charity is dependent upon several unpaid volunteers and the Trustees who serve on the management committee and assist with publicity and funding. The Charity is extremely grateful for all they have done.

Reserves Policy

The Charity aims to hold reserves at any given time to be able to meet three to six months of planned expenditure and is expecting to reach this aim in the near future.

Grant Policy

The trustees will identify the organisation or individual who may be best placed to assist in fulfilling the solution to the need. This will be done by personal contact with the organisation or individuals over a period of time and assessing whether they have necessary skills and expertise to deliver the project which is required.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The charity was formed and is governed by the Memorandum and Articles of Association. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr D Taylor Mr J R Parker Mr T A Wright

The trustees' r eport was approved by the Board of Trustees.

Mr D Taylor

Dated: 30 September 2021

SOURCE OF HOPE LIMITED

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SOURCE OF HOPE LIMITED

I report to the trustees on my examination of the financial statements of Source of Hope Limited (the charity) for the year ended 31 December 2020.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (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 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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 financial statements to be reached.

Oliver Grills FCA

J A Fell & Company 40 Hoghton Street Southport PR9 0PQ

Dated: 30 September 2021

SOURCE OF HOPE LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Unrestricted
funds funds
2020 2019
Notes
£		 £
Income from:
Donations and legacies 3 63,823 105,431
Expenditure on:
Raising funds 4 180 3,000
Charitable activities 5 67,781 82,635
Total resources expended 67,961 85,635
Net (expenditure)/income for the year/
Net movement in funds (4,138)
19,796
Fund balances at 1 January 2020 30,806 11,010
Fund balances at 31 December 2020 26,668 30,806

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

SOURCE OF HOPE LIMITED

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within
one year
11
Net current assets
Income funds
Unrestricted funds		 2020
£
9,669
17,403
27,072
(404)		 £
26,668
26,668
26,668		 2019
£
2,098
28,708
30,806
-		 £
30,806
30,806
30,806

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial period and of its incoming resources and application of resources, including its income and expenditure, for the financial period in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 30 September 2021

Mr D Taylor Trustee

Company Registration No. 10808150

SOURCE OF HOPE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

Source of Hope Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 127 Moss Lane, Hesketh Bank, PR4 6AE.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's memorandum and articles, the Companies Act 2006 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has 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 financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

1.5 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.

SOURCE OF HOPE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.6 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

SOURCE OF HOPE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3 Donations and legacies

4
5		 UnrestrictedUnrestricted
funds
funds
2020
2019
£
£
Donations and gifts
33,889
68,092
Grants receivable
23,500
23,500
Gift aid receivable
6,434
13,839
63,823
105,431
Raising funds
UnrestrictedUnrestricted
funds
funds
2020
2019
£
£
Fundraising and publicity
Support costs
180
3,000
180
3,000
Charitable Activities
2020
2019
£
£
Travel
-
3,653
Grant funding of activities (see note 6)
67,147
78,331
Share of support costs (see note 7)
634
651
67,781
82,635

SOURCE OF HOPE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

6 Grants payable

Grants to institutions:
Children's support
Orphanage
Conservation Farming
Micro Loans
Local Church Support
Vehicle for Team
-
Support costs
Support
costs
Governance
costs
£
£
Website
331
-
Bank and payment
processing
303
-
Fundraising consultant
180
-
814
-
Analysed between
Fundraising
180
-
Charitable activities
634
-
814
-		 2020
£
18,273
878
47,996
-
-
-
67,147
2020
Support
costs
Governance
costs
£
£
£
331
331
-
303
320
-
180
3,000
-
814
3,651
-
180
3,000
-
634
651
-
814
3,651
-		 2019
£
30,287
1,481
18,632
3,189
794
23,948
78,331
2019
£
331
320
3,000
3,651
3,000
651
3,651

7 Support costs

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration from the charity during the year. In the prior year trustees' travelling costs of £3,653 were paid by the charity in order to facilitate the review of projects and develop partnerships with organisations in Kenya to expand the work of the charity.

Donations totalling £18,500 were made to the charity by the trustees during the period (2019 - £30,736).

SOURCE OF HOPE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

9 Employees

The average monthly number of employees during the year was:

2020 2019
Number Number
Total - -
10 Debtors
2020 2019
Amounts falling due within one year: £ £
Other debtors 1,810 2,098
Prepayments and accrued income 7,859 -
9,669 2,098
11 Creditors: amounts falling due within one year
2020 2019
£ £
Accruals and deferred income 404 -