REGISTERED CHARITY NUMBER: 1178465
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 March 2022
for
The Favela Foundation
The Favela Foundation
Contents of the Financial Statements for the Year Ended 31 March 2022
| Page | |
|---|---|
| Report of the Trustees | 1 to 2 |
| Independent Examiner's Report | 3 |
| Statement of Financial Activities | 4 |
| Balance Sheet | 5 |
| Notes to the Financial Statements | 6 to 9 |
| Detailed Statement of Financial Activities | 10 |
The Favela Foundation
Report of the Trustees for the Year Ended 31 March 2022
The trustees present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have opted to prepare the accounts on a receipt and payment basis in accordance with section 133 of the Charity Act 2011. The accounts have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity's governing document and the Charity Act 2011.
OBJECTIVES AND ACTIVITIES
The charity was formed to further the advancement of education and social welfare for the public benefit in the communities of the favelas of Brazil.
The charity aims to meet this objective by providing grants to NGOs and community groups active in favelas which provide supplementary education, social support and other community activities to help them meet specific goals or widen their reach.
ACHIEVEMENT AND PERFORMANCE
The year ending 31 March 2022 continued to see COVID-19 support measures be the primary focus of The Favela Foundation's projects and partners. Throughout the year, The Favela Foundation continued to offer support to impacted favela communities, funding further rounds of 'cestas basicas' (basic packages) and other items, which were distributed to favela communities by our project partners. This continued the support that The Favela Foundation had offered throughout 2020 and ensured communities received basic needs as the pandemic continued to grip Brazil.
During the period in review, the charity:
-
Continued partnerships with Vivencia das Manas and Acorda Capoeira, donating almost £10,000 in COVID-19 relief to communities
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Repeated funding for these projects on a three-month basis, regularly reviewing the needs of favela communities at each juncture.
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Began planning for returning to core activities, working closely with Instituto Wark and Vivencia das Manas to plan for long-term, future activities
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Ran 'Favela February' campaign, highlighting information about favelas and Brazil over the month, and raising over £3,000.
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Continued a corporate partnership with Pipoca LLC, raising over £6,000 for charitable activities.
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Visited projects in Rio de Janeiro, seeing first hand how grants are being utilised in communities.
During this period, Rebecca Wilson stepped down as a trustee after over four years on the board, effective from 31 March 2022. Flavia Franco has since taken on responsibility for fundraising activities.
FINANCIAL REVIEW
During the period in review, The Favela Foundation was able to raise similar donations to the previous year, primarily due to partnerships, generous donations from the public (including over 'Favela February' campaign) and a £5,000 grant from Anglo American's Ambassadors for Good programme.
The trustees' policy to maintain unrestricted reserves at a reasonable level to fulfil the objectives of the charity remains in place, and the final position is reviewed regularly at meetings. The total funds of the charity as at the balance sheet date were £42,895, with £7,193 remaining restricted.
Page 1
The Favela Foundation
Report of the Trustees
for the Year Ended 31 March 2022
FUTURE PLANS
The charity has been working closely with its project partners throughout 2022 to support them in returning to their core objectives and goals, helping them transition from COVID-19 relief back to their focus as educational and community projects.
The charity aims to continue supporting existing projects, while expanding to reach new beneficiaries and partners where possible. The Favela Foundation continues to aim to diversify its funding methods, with securing further grants, regular donors, and corporate partnerships a focus for 2022-23. Throughout 2022 The Favela Foundation has been planning to drive large scale initiatives with our partners, with the aim of creating 'space and time' for our project partners to work with their beneficiaries. These initiatives will have focused fundraising activities.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The charity is governed by the CIO Foundation Deed dated 21 May 2018. The charity obtained charitable status on 21 May 2018.
The first trustees are appointed for a 4-year term, thereafter trustees will be appointed for a 3-year term. Appointments are passed by the charity trustees.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1178465
Principal address
137 Martin Way Morden SM4 4AR
Trustees
K G Gupta Trustee Ms R K Louise Wilson Trustee (resigned 31.3.22) P A Somerset Gibbs Chair M J Smith Trustee Ms F D Cintra Franco Trustee
Approved by order of the board of trustees on ............................................. and signed on its 15 January 2023 behalf by:
.......................................................... M J Smith - Trustee
Page 2
Independent Examiner's Report to the Trustees of The Favela Foundation
Independent examiner's report to the trustees of The Favela Foundation
I report to the charity trustees on my examination of the accounts of The Favela Foundation (the Trust) for the year ended 31 March 2022.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's 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:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the 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 any 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.
…………………………………….
Sajjad Jaffer FCCA Harris Accountancy Services Ltd Cobalt Square 83 Hagley Road Birmingham B16 8QG
Date: ......13/01/2023..................
Page 3
The Favela Foundation
Statement of Financial Activities for the Year Ended 31 March 2022
| Unrestricted Restricted funds funds Notes £ £ INCOME AND ENDOWMENTS FROM Donations and legacies 11,854 3,410 Charitable activities Grants 6,355 5,075 Total 18,209 8,485 EXPENDITURE ON Charitable activities Expenditure on charitable activities 10,364 6,607 NET INCOME/(EXPENDITURE) 7,845 1,878 RECONCILIATION OF FUNDS Total funds brought forward 27,857 5,315 TOTAL FUNDS CARRIED FORWARD 35,702 7,193 |
31.3.22 31.3.21 Total Total funds funds £ £ 15,264 23,206 11,430 8,500 26,694 31,706 16,971 31,868 9,723 (162) 33,172 33,334 42,895 33,172 |
|---|---|
CONTINUING OPERATIONS
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
Page 4
The Favela Foundation
Balance Sheet 31 March 2022
| Unrestricted Restricted funds funds Notes £ £ CURRENT ASSETS Cash at bank 35,702 7,193 NET CURRENT ASSETS 35,702 7,193 TOTAL ASSETS LESS CURRENT LIABILITIES 35,702 7,193 NET ASSETS 35,702 7,193 FUNDS 4 Unrestricted funds Restricted funds TOTAL FUNDS |
31.3.22 Total funds £ 42,895 42,895 42,895 42,895 35,702 7,193 42,895 |
31.3.21 Total funds £ 33,172 33,172 33,172 33,172 27,857 5,315 33,172 |
|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on
15 January 2023 ............................................. and were signed on its behalf by: ............................................. M J Smith - Trustee
The notes form part of these financial statements
Page 5
The Favela Foundation
Notes to the Financial Statements for the Year Ended 31 March 2022
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The charity is a Charitable Incorporated Organisation registered in England. The accounts have been prepared on a receipts and payments basis in accordance with section 133 of the Charity Act 2011.
The address of the principal office is given in the charity information on page 1 of these accounts. The nature of the charity's operations and principal activities are as set out in the Trustees' Annual Report of the accounts.
The accounts are presented in sterling which is the functional currency of the charity and are not rounded.
The significant accounting policies applied in the preparation of these accounts are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
Critical accounting judgements and key sources of estimation uncertainty
No judgements have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the accounts.
No key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Taxation
As a registered charity, the organisation is exempt from income and corporation tax to the extent that its income and gains are applicable to charitable purposes only. Value Added Tax is not recoverable by the charity and is therefore included in the relevant costs within the receipts and payments accounts.
Structure of funds
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Management and administration expenditure
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. These are incurred directly in support of expenditure on the objectives of the charity.
There were no management and administration costs in the current year or previous period.
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continued...
The Favela Foundation
Notes to the Financial Statements - continued for the Year Ended 31 March 2022
2. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.
| 3. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Restricted funds funds £ £ INCOME AND ENDOWMENTS FROM Donations and legacies 23,206 - Charitable activities Grants 3,500 5,000 Total 26,706 5,000 EXPENDITURE ON Charitable activities Expenditure on charitable activities 28,683 3,185 NET INCOME/(EXPENDITURE) (1,977) 1,815 RECONCILIATION OF FUNDS Total funds brought forward 29,834 3,500 TOTAL FUNDS CARRIED FORWARD 27,857 5,315 |
Total funds £ 23,206 8,500 31,706 31,868 (162) 33,334 33,172 |
|---|---|
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continued...
The Favela Foundation
Notes to the Financial Statements - continued
for the Year Ended 31 March 2022
| 4. | MOVEMENT IN FUNDS | ||
|---|---|---|---|
| Net | |||
| movement | At | ||
| At 1.4.21 | in funds | 31.3.22 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| Charitable activities 27,857 |
7,845 | 35,702 | |
| Restricted funds | |||
| Charitable activities 5,315 |
1,878 | 7,193 | |
| TOTAL FUNDS 33,172 |
9,723 | 42,895 | |
| Net movement in funds, included in the above are as follows: | |||
| Incoming | Resources | Movement | |
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| Charitable activities 18,209 |
(10,364) | 7,845 | |
| Restricted funds | |||
| Charitable activities 8,485 |
(6,607) | 1,878 | |
| TOTAL FUNDS 26,694 |
(16,971) | 9,723 | |
| Comparatives for movement in funds | |||
| Net | |||
| movement | At | ||
| At 1.4.20 | in funds | 31.3.21 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| Charitable activities 29,834 |
(1,977) | 27,857 | |
| Restricted funds | |||
| Charitable activities 3,500 |
1,815 | 5,315 | |
| TOTAL FUNDS 33,334 |
(162) | 33,172 |
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continued...
The Favela Foundation
Notes to the Financial Statements - continued
for the Year Ended 31 March 2022
4. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| Charitable activities | 26,706 | (28,683) | (1,977) |
| Restricted funds | |||
| Charitable activities | 5,000 | (3,185) | 1,815 |
| TOTAL FUNDS | 31,706 | (31,868) | (162) |
5. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 March 2022.
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The Favela Foundation
Detailed Statement of Financial Activities for the Year Ended 31 March 2022
| Detailed Statement of Financial Activities for the Year Ended 31 March 2022 |
||
|---|---|---|
| 31.3.22 | 31.3.21 | |
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Donations and legacies | ||
| Donations | 11,446 | 17,224 |
| Charitable activities | 3,818 | 5,982 |
| 15,264 | 23,206 | |
| Charitable activities | ||
| Grants | 11,430 | 8,500 |
| Total incoming resources | 26,694 | 31,706 |
| EXPENDITURE | ||
| Charitable activities | ||
| Expenditure on charitable activities | 16,645 | 31,263 |
| Advertising | 326 | 149 |
| Bank Charges | - | 456 |
| 16,971 | 31,868 | |
| Total resources expended | 16,971 | 31,868 |
| Net income/(expenditure) | 9,723 | (162) |
This page does not form part of the statutory financial statements
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