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2022-09-30-accounts

SOUTHERN AFRICA LITERATURE TRUST

71 Howard Street North Shields Tyne and Wear NE30 1AF

Annual Report and Financial Statements for the year 1[st] October 2021

to 30[th] September 2022

Registered Charity No 1181782 Company Registered No 11581132

SOUTHERN AFRICA LITERATURE TRUST

Index to Financial Statements

Title Page No.
Report of the Trustees 1 - 6
Independent Examiner’s Report 7
Balance Sheet 8
Statement of Financial Activities 9
Notes to the Accounts 10 - 11

Page 1 of 11

SOUTHERN AFRICA LITERATURE TRUST Report of the Trustees

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements for the year ended 30[th] September 2022. The trustees have adopted the provisions of 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) (effective 1 January 2015).

OBJECTIVE AND ACTIVITIES Objective and aims

The Charity’s objectives are set out in its Memorandum and Articles of Association and are as follows:

1). To advance the Christian religion in, particularly but not exclusively Central and Southern Africa, for the benefit of the public through the holding of prayer meetings, lectures, public celebration of religious festivals producing and/or distributing literature on Christianity to enlighten others about the Christian religion, and,

2). The relief and assistance of people in any part of the world who are the victims of war or natural disasters, trouble, or catastrophe in particular by the provision of grants to charitable organisations.

How our activities deliver public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. The trustees have complied with their duty in Section 17 of the Charities Act 2011 and have paid due regard to guidance published by the Charity Commission regarding public benefit.

ACHIEVEMENT AND PERFORMANCE Charitable activities

We are grateful for your continued support, which has enabled us to make a positive impact on the lives of many individuals through our outreach programs and initiatives. In everything we acknowledge the Lord’s faithfulness and pray that the efforts of the Trust will ultimately be for his glory alone.

Encouragements:

  1. Income: We are pleased to report that our upward trend in donation income has continued, demonstrating the unwavering support and generosity of our donors. Southern Africa Literature Trust experienced a significant increase in income for the year, with a rise of approximately 10% compared to the previous year. This increase in some measure reflects a generous response to the needs precipitated by Cyclone Ana (of which more later). We extend our heartfelt gratitude to all our donors, whose contributions have played a crucial role in sustaining our programs and initiatives. Your dedication to our cause is truly commendable, and we remain inspired by your unwavering belief in the power of Gospel literature to transform lives. Thank you for your continued support and commitment to our mission.

  2. Malawi Gospel Outreach: Following a temporary break, our Malawi Gospel Outreach program resumed with great enthusiasm. We had the privilege of visiting six schools, where we distributed gospel texts and exercise books. Additionally, we organized a gospel program at each school, leaving a lasting impact on the students.

  3. Saidi Development Work: We made notable progress with the development work at Saidi. We successfully purchased additional land and continued constructing the perimeter wall. Furthermore, we completed the container offices and began working on the print room, which will also serve as a temporary apartment. To enhance security, we installed CCTV cameras and a siren system, although we are addressing some teething issues with the system. We also retained the services of a local architect in Malawi and have begun work on a preliminary development plan for the site, which we hope to publish in the months ahead.

  4. School Visitations: Our school visitations have been met with great demand, highlighting the significant impact we are making in the schools’ sector. These visits provide an opportunity for us to engage with students and impact these young lives.

Page 2 of 11

SOUTHERN AFRICA LITERATURE TRUST Report of the Trustees (Continued)

Discouragements:

  1. Fire Incident: In January 2022, we experienced a setback when a fire destroyed the roof of the msasa, where we conduct numerous meetings and outreach activities. However, we are pleased to report that the msasa has been repaired and is once again fully operational.

  2. Cyclone Impact: Unfortunately, Malawi was hit by another devastating cyclone early in 2022, causing widespread destruction. Despite this, we were able to contribute to the rebuilding efforts, assisting several families in reconstructing their homes.

  3. Security Incident: One of our colleagues, Anna, experienced a break-in at her home, followed by a distressing assault. While this incident has deeply affected her, we are grateful that she is recovering well. We continue to offer support from a distance, providing assistance whenever possible.

Other Significant Matters:

  1. Board Development: We remain committed to enhancing the capabilities of our Board of Trustees. Throughout the year, we organized a workshop focusing on risk assessment, equipping our trustees with valuable skills to navigate challenges effectively.

  2. Trustee Update: Unfortunately, one of our esteemed trustees, Janet McMaster, was diagnosed with cancer during the year. This has understandably impacted her ability to contribute to the board. We extend our heartfelt wishes for her full and speedy recovery, and we appreciate her dedication and past contributions.

We would like to express our sincere gratitude to the existing trustees for their unwavering support and commitment. Their guidance and expertise have been invaluable in our pursuit of our mission. As we recognize the need for a broader range of perspectives, we are actively seeking new trustees who can bring diverse expertise and insights.

Finally, we recognise that the work of the Trust would not be possible without the prayer support of many believers around the world. This is of enormous value to us, and we offer sincere thanks in the Lord’s name.

Page 3 of 11

SOUTHERN AFRICA LITERATURE TRUST Report of the Trustees (Continued)

FINANCIAL REVIEW

Financial position

During the period the charity reported a surplus of £8,470 (£33,521 for 2021). At the balance sheet date the charity had a surplus in funds of £89,080, (£80,610 at 2021), of which £(61,133), (£(34,319) at 2021), were restricted funds.

Investment policy

The Memorandum and Articles give the trustees the power to apply funds in such a manner as they think fit of for the benefit of any of the stated charitable objects or to invest funds as permitted by the Trustee Act 2000.

Reserves policy

The trustees have examined the requirement for reserves in the light of the main risks facing the charity. It is the policy of Southern Africa Literature Trust to maintain funds at a level which allows the charity to operate in the light of unforeseen circumstances. The trustees believe that the level of reserves at the end of the financial accounting period are adequate to meet this policy.

PLANS FOR FUTURE PERIODS

The msasa fire, cyclone Ana, and Anna Vallance’s break-in and assault each cast a long, dark shadow over 2022. As we collectively began to recover from these incidents, we had occasion to reflect upon the need for increased resilience and Risk Management awareness across our operations.

Accordingly, we took the opportunity to begin in-depth Risk Management assessments when we met for our Trustees’ workshop in early October 2022, and commissioned a week-long Safeguarding workshop in Malawi in early 2023.

The need to improve our operational resilience and governance capacity was highlighted again by Janet McMaster’s illness, and the further cyclone in Malawi in early 2023, which brought devastation on an unprecedented scale. We were so thankful that Harold Makawa (Malawi Trustee) and his family were brought safely through the cyclone, albeit in traumatic circumstances. A different outcome could have had a very serious impact on our functional ability in Malawi.

We have been very encouraged recently by the spiritual progress at Saidi, where years of effort is starting to bear fruit. A number of believers have been baptised and form the nucleus of the recently-established assembly.

Looking forward, then, we plan to continue to broaden and deepen our capacity at all levels, both in the UK and Malawi. We will continue to seek to recruit additional Trustees who can augment our present skill set, and to train Trustees in order to improve their capabilities. Although our planned week of Bible teaching was frustrated by Cyclone Freddy, the teaching and training of additional volunteer works in Malawi remains a priority, now more so than ever.

It is also increasingly apparent that we need to improve our readiness to respond to disaster situations, especially if extreme weather incidents continue to be a frequent as they have been recently. This will entail increasing our financial reserves to ensure that we have sufficient funds available to respond, as well as other practical measures, still to be determined.

Our core evangelistic activities continue to expand. We are excited about the ever-nearing prospect of Nthawi ya Baibulo (Bibletime) being finally ready for roll-out, but very aware that this will require significant human and financial resources.

Page 4 of 11

SOUTHERN AFRICA LITERATURE TRUST Report of the Trustees (Continued)

We are equally excited and daunted by the potential scale of the project to develop the Saidi site, not just in support of the existing work there, but also anticipating its expanding function as a centre for the literature, children’s and teaching ministries. Over the incoming months, we aim to continue work on the development proposal, and to begin more detailed planning of the next phase(s) of development, which are likely to entail accommodation for overseas visitors and short-term works, and facilities for residential Bible teaching.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity was incorporated as a company limited by guarantee on 21[st] September 2018 and gained charitable status on 28[th] January 2018 from which latter date the activities of the charity commenced.. The company was established under a Memorandum of Association which established the objects and powers of the charity and is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute and amount not exceeding £10.

The trustees acting at the year end and who served for the full accounting period were:

Mr. Stephen Harper Mrs. Agnes Gail Harper Mr James David McMaster Mrs. Janet Deborah McMaster Dr. Sarah Elizabeth Bond (ne Horan)

Recruitment and appointment of trustees

Members of the Board are appointed by a decision of the Directors. Every Director shall be appointed for an initial term of up to three years and by invitation only. The process is as follows, either the Chairman or one of the directors will make known to the other members of the board who they propose. After careful consideration and an appropriate character reference, a unanimous agreement should be reached when the final decision is made. In the case of indecision, the matter will be given further consideration until the next Board meeting.

At each annual general meeting one-third of the directors or, if their number is not three or a multiple of three, the number nearest to one-third, must retire from office and may offer them-selves for re-election.

Organisational structure

Trustees’ meetings are held each month either with the trustees meeting in person or by internet communication. Having regard to the size and activities of the charity, our experience has been that the company’s business has been adequately dealt with at the monthly meetings. Minutes are prepared, circulated and agreed at subsequent meetings.

Induction and training of new trustees

If a new board member is appointed, they will be provided with an induction pack outlining the duties and responsibilities of their role and additional information as regards to the Charity. DBS clearance is a prerequisite.

Risk Management

The trustees review the major risks to the charity on an ongoing basis. Significant external risks are funding and expenditure.

Procedures are in place to ensure compliance of health and safety regulations and safeguarding for volunteers, leaders and trustees .

Page 5 of 11

SOUTHERN AFRICA LITERATURE TRUST Report of the Trustees (Continued)

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

11581132 (England and Wales)

Registered Charity number 1181782

Registered office

71 Howard Street North Shields Tyne and Wear NE30 1AF

Trustees

Mr. Stephen Harper Mrs. Agnes Gail Harper Mr James David McMaster Mrs. Janet Deborah McMaster Dr. Sarah Elizabeth Bond

Independent Examiner

David Hodgson, MBE, FCA, ACIB Read, Milburn & Co 71 Howard Street North Shields Tyne and Wear NE30 1AF

Bankers

HSBC UK Belfast Royal Avenue 25-29 Royal Avenue Belfast BT1 1FB

This report has been prepared in accordance with the special provisions of Part 15 of Companies Act 2006 relating to small companies.

12 July 2023 Approved by order of the board of trustees on ……………………………….. and signed on its behalf by

…………………………………………………………..

Mr Stephen Harper

On behalf of the Trustees of Southern Africa Literature Trust

Page 6 of 11

INDEPENDEN'T EXAMINER'S REPORT TO THE TRUSTEES OF SOUTHERN AFRICA LITERATURE TRUST For the period ended 301h September 2022 Independent Examiner's Reporl to the trustees of Southern Africa LiteTllture Trust I rcport io Ihe chariry irnsiees on my examination of ihe accounis of ihe Company for the accounting period ended 30 September 2022. Responsibilities and basis of report As the charity trnstees of the Company (and also its direciors for ihe purpose of company law.), you are responsible for ihe preparation of the accounts in accordance ll'iih ihe r¢quir¢m¢nts of tl)e Companies Act 2006 I'lhe 2006 Aci"). Having satisfied myself thai ihe accounts of the Company are noi required io be audiied under Part 16 of the 2006 Act and #re eli&*ible for independent examinalion. I report In respect of my examination of your ¢harily'S accounts Carried oui under seciion 145 of ihe Charilies Aci 2011 I'lhe 2011 Act"). In carying i)ui my examinatiun I have followed ihe Direciions given by ihe ChaTiiy Conimission under seciion 1451Sllbl of the 2011 Aci. Independent examiner's st•tement I have compleied my examination. l ¢onfirni that no mailers have corne lo my atienlion in conneeiion ivith the examination giving me Cause to believe.. accounting records were not kept in respect of ihe Company as required by section 386 of the 2006 Ac(; or Ihe accounts do not ?¢cord with ihose records; or Ihe accounls do not Comply with ihe accouniing requiremenls of seclion 396 of ilie 2006 Act other Ihan any requirement Ihat the accounis give a truc and fair view which is nol a malter considered as pari of an independent examinaliun. or the accounts have not been prepared in accordance with the Inethods and principles of ihe Stateinenl of Recommended Praclice for accounting Jnd reporting by charities lapplicable io chariiics preparing Iheir ac¢ount5 in accordance lviih ihe Financial Reponing Siandard applicablc in the UK and Republi of Ireland IFRS1021). I have no concern5 and have come across no oiher matlers in connection wilh the examination to which attention should be drath'n in ihis report in order io enabl¢ a proper undersianding of the accounts to be reached. Dai'id Hodgson, ,MBE, FCA, ACIB Cliarlered Accourbiani Read, Milburn & Co 71 Howard Sireei Nollh Shields NE30 IAF Date.. 013 Page7ofll

SOUTHERN AFRICA LITERATURE TRUST

Balance Sheet

as at 30 September 2022

FIXED ASSETS
Office Equipment, at cost
Less depreciation
CURRENT ASSETS
Debtors – Customs & Excise
Loan – Harold Makawa
Cash at Bank and in Hand
CURRENT LIABILITIES
Sundry Accruals
Net Current Assets
Total Assets less Current Liabilities
Total Net Assets
FUNDS OF THE CHARITY
Unrestricted Funds
Restricted Funds (Note 4)
Total Funds		 £
 2022
£
530
312
218
1,062
9,475
78,325
88,862
-
88,862
_____
89,080
_____
£89,080
150,213
(61,133)
_____
£89,080		 2021
£
272
1,181
-
79,157
£80,338
-
80,338
____
80,610
_____
80,610
114,929
(34,319)
_____
£80,610

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 30 September 2022.

The members have not required the company to obtain an audit of its financial statements for the period ended 30 September 2022 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

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

12 July 2023 The financial statements were approved by the Board of Trustees on ……..…………… and were signed on its behalf by:

.............................................

STEPHEN HARPER, (Chair of Trustees)

The notes form part of these financial statements

Page 8 of 11

SOUTHERN AFRICA LITERATURE TRUST

Statement of Financial Activities for the year ended 30 September 2022

*/-------------2022---------------* */-------------2022---------------* */-------------2022---------------* 2021
Unrestricted Restricted Total
INCOME
Donations and Legacies 171,896
94,796		 266,692 224,338
Gift Aid 4,409 92 4,501 2,672
Bank Interest Received 19 - 19 3
_ ______ ______ _
Total Income £176,324 £94,888 £271,212 £227,013
====== ====== ======= ======
EXPENDITURE
Charitable Activities
Advertising & Promotion 255 - 255 191
Computer Costs 2,424 29 2,453 1,001
Carriage & Shipping 2,502 - 2,502 1,113
Travel & Subsistence 14,337 - 14,337 5,365
Motor Expenses 1,584 - 1,584 225
Rent of Office and Storage 2,436 546 2,982 2,923
Heat & Light - - 160
Insurance 269 - 269 250
Telephone 291 - 291 302
Printing, Postage & Stationery 59 - 59 58
General Administration Expenses 53 - 53 1,059
Donations to SALT Malawi 91,477 121,127 212,604 148,961
Literature Publication & Printing 10,083 - 10,083 22,800
Malawi Gospel Outreach Expenses 10,604 - 10,604 1,074
Relief Aid & Operations - - - 6,616
Bank Charges 1,516 - 1,516 418
Accountancy & Professional Expenses 2,683 - 2,683 313
Foreign Exchange variances 413 - 413 595
Depreciation of Office Equipment 54 - 54
__ __ __ __
Total Expenses £141,040 £121,702 £262,742 £193,492
====== ====== ====== =====
NET INCOME 35,284 (26,814)
8,470		 33,521
RECONCILIATION OF FUNDS
Total funds brought forward 114,929 (34,319) 80,610 47,089
______ _____ _____ ______
TOTAL FUNDS CARRIED FORWARD £150,213 £(61,133) £89,080 £80,610
====== ===== ===== =====

The Notes form part of these financial statements

Page 9 of 11

SOUTHERN AFRICA LITERATURE TRUST Notes to the Financial Statements

Note 1 – STATUTORY INFORMATION

Southern Africa Literature Trust is a private company limited by guarantee, registered in England and Wales. The company’s registered number and registered address can be found within the Reference and Administration Details.

The Accounting period is for the year to 30[th] September 2022 and comparative figures are for the year to 30[th] September 2021.

Note 2 – ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) “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) (effective 1 January 2015)”, Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

As these are the first financial statements, there are no comparative figures shown.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to the expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amounts and obligation can be measured reliably. Expenditure is accounted for on a cash basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Depreciation

Depreciation has been provided at a rate of 20% on a reducing balance basis on fixed assets.

Taxation

The Charity is exempt from taxation on its charitable activities.

Realised gains and losses

There have been no realised gains or losses on investments during the year.

Note 3 – TRUSTEES’ REMUNERATION AND BENEFITS

No payments have been made to any of the Trustees during the accounting period to 30[th] September 2022 or in the previous accounting period.

Page 10 of 11

SOUTHERN AFRICA LITERATURE TRUST Notes to the Financial Statements (continued)

Note 4 – RESERVES

The balance on Restricted Reserves is made up of restricted income less associated expenditure during the accounting period. Details of the make-up of balances on Restricted Reserves as at the Balance Sheet date is as follows:-

B/Fwd Income Expenditure C/Fwd
Building Fund (36,801) 5,985 83,075 (113,891)
Relief Funds 11,397 83,750 9,016 86,131
Local Workers (8,915) 5,153 29,611 (33,373)
______ ______ ______ ______
£(34,319) £94,888 £121,702 £(61,133)
====== ====== ====== =====

Page 11 of 11