## **THE NENO MACADAMIA TRUST**
**REPORT AND ACCOUNTS FOR THE PERIOD ENDED 31 DECEMBER 2020**
**Charity Number: 1184696** (From 31 July 2019) **1104555** (Until 31 July 2019)
## **THE NENO MACADAMIA TRUST**
## **REPORT AND ACCOUNTS FOR THE PERIOD ENDED 31 DECEMBER 2020**
|**CONTENTS**|**Page**|
|---|---|
|Report of the Trustees|3 to 5|
|Independent Examiners Report|6|
|Income and Expenditure Account|7|
|Balance Sheet|8|
|Notes to the Accounts|9 to 10|
Page 2 of 10
## **THE NENO MACADAMIA TRUST**
## **REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2020**
The Trustees present their annual report for the period ended 31 December 2020.
## OBJECTS
The objects of the Trust are the alleviation of poverty and the improvement of the conditions of life in socially and economically disadvantaged communities, in particular Neno and the adjacent districts in Malawi, Africa, as the trustees may from time to time direct.
## PRINCIPAL ACTIVITIES
The principal activities continued to be:
Supporting cooperatives, smallholder nurseries, infrastructure and training facilities, including:
- establishing nurseries, tree planting and tree surveys
- the NESMACSL warehouse and nursery
- the Neno Vocational Training Centre
- cooperative warehouse and individual smallholder drying racks
Facilitating access to resources for the smallholder macadamia industry in Malawi through HIMACUL, including:
- fairtrade certification and securing trade finance
- buying macadamia from farmers (nut in shell)
- sorting, grading and transport to macadamia factory - fairtrade sales in Europe through Liberation Foods
Developing economic, social and environmental activities delivered by HIMACUL for smallholder macadamia farmers, including:
- agroforestry systems
- environment protection, soil and water conservation
- business planning for rural enterprises
- cooperative training, employment and community development
Focused on the services provided by HIMACUL to smallholders, including:
- elderly farmers growing macadamia as a retirement and inheritance crop
- training and nutrition for children and young people
- rural energy and waste management
- environmental service payment systems
## ORGANISATION
The principal office is 42 Harpur Street, Bedford, MK40 2QT.
OFFICERS & COUNCIL MEMBERS
The officers and council members who served during the year were:
## Chairman Mr Andrew Emmott
Secretary Dr William Rawes (Appointed 31 July 2019) Timothy Emmott (Resigned 31 July 2019)
- Treasurer Mr John Ascott (Appointed 31 December 2020) Mr Geoff Taylor (Resigned 31 December 2020)
- Trustees Timothy Emmott (Appointed 31 July 2019) Mr David Ascott
Mr John Ascott (Appointed 7 January 2020, Resigned 31 December 2020)
Page 3 of 10
## **THE NENO MACADAMIA TRUST**
## **REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2020**
CHAIRMAN'S ANNUAL REPORT FOR 2020
The purpose of our charity is: **The alleviation of poverty and the improvement of the conditions of life in socially and economically disadvantaged communities, in particular Neno and the adjacent districts in Malawi as the trustees may from time to time direct.**
## **Conditions and needs in Malawi**
Famine Early Warning System report for Malawi – November 2020 to May 2021 report is:
https://fews.net/southern-africa/malawi
Although crop production was above-average for the country as a whole the southern region produced less than average and there are some districts that will be needing assistance during the hunger period ie: the months up to April. Neno is one of the districts that the Malawi Department for Disaster identified as requiring assistance.
The El Nina rainfall is expected to lead to above average rainfall for the current growing season so there is some hope that the maize crop will be good this year. However, heavier than usual rainfall can lead to flooding and crop damage.
Reliance on rainfed maize production illustrates the vulnerability of smallholder farmers to climate shocks with extreme weather events including drought, floods and increasing diurnal temperature ranges.
During 2020 Malawi has faced a number of significant additional challenges including the COVID-19 pandemic and the rerun of the 2019 election. Malawi’s approach to dealing with both of these crises is a testament to the resilience and bodes well for the future.
## **NMT Activities 2020**
In 2020 NMT made its third set of Climate Damage Mitigation Certificate payments to HIMACUL farmers and cooperatives from its 2019 macadamia tree survey, and carried out its fourth (2020) farmer survey. Purchases of CDMCs were from individuals, businesses, the Themba Trust and Profs Who Fly (www.profswhofly.org) who are using NMT’s carbon calculator to estimate the voluntary carbon offsets for air travel: http://nenomacadamiatrust.co.uk/NMTCarbonCalculator.html
NMT’s mobile phone based data collection method continued to be refined by NMT trustee Dr Will Rawes. The fact that the community based survey has been able to continue during this pandemic year when NMT trustees had to provide support remotely due to travel restrictions is further confirmation of the approach
Having completed 4 pilot years of surveys and 3 years of CDMC payments we are now exploring ways of scaling up so that more farmers benefit and an increasing number of macadamia trees are planted in the next few years. We aim to build on the invaluable support from Profs Who Fly, Imperial College, the OU, Clinton Development Initiative, and the individuals who have bought CDMCs as we seek new partners in the year ahead.
During the last year NMT trustees continued to support and engage with Emmanuel Zuza, an Open University GDRF PhD student who is working with HIMACUL and NMT to study the impact of different agroecological zones on 5 macadamia cultivars grown by smallholder farmers.
Will Rawes continued his work in support of the Malawi Opanda Utsi (Flame Without Smoke) (https://www.google.co.uk/search?q=malawi+opanda+utsi) initiative to further develop the use of gasifier cookstoves and solar trough kettles both of which are appropriate technologies to reduce wood burning for cooking, in order to reduce deforestation and pollution from burning trees.
Page 4 of 10
## **THE NENO MACADAMIA TRUST**
## **REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2020**
CHAIRMANS ANNUAL REPORT FOR 2020 continued
NMT’s partnership continued with the Open University course SDT306 Environment: Responding to change http://www.open.ac.uk/courses/modules/sdt306. During the year the OU post graduate office started a new project with NMT and Marston Vale Community Forest to plant trees in the UK and Malawi in recognition of PhD students who successfully complete their degrees.
During the year NMT and HIMACUL continued to focus on the rehabilitation and restoration of macadamia tree nurseries with support from the Walbrooke Foundation. Together we have significantly improved and expanded three geographically spread nurseries, and have increased tree production by a factor of 10.
We are grateful for the ongoing support from individuals and for the grants small and large that we receive each year. The increased contribution to NMT’s finances from CDMC payments bodes well for the future as NMT, along with HIMACUL, continue to focus on building the resilience of farmers in Malawi to climate shocks. In particular we would like to thank the Souter Charitable Trust for their timely grant in September 2020 which enabled NMT to continue its support of the cooperatives in Malawi in spite of the pandemic and travel restrictions.
As we look forward to 2021 we are regularly reminded that the climate crisis is upon us and there is limited time to act. Our aim is to provide a bridge between the carbon damage mitigation that is needed to reduce the increase in global average temperatures and the need for farming communities to have help adapting to changing weather patterns, as is happening with HIMACUL’s farmers in Malawi.
## GOVERNANCE
During the year 2020, NMT has converted its charity status from the old “Registered Charity" to the new “Charitable Incorporated Organisation" as advised by the Charity Commission. This means our charity number has changed to 1184696 but all the other details, objectives, and trustees remain as before. Both our previous and current accounts can be found on our web site: www.nenomacadamiatrust.co.uk
## TRANSACTIONS AND FINANCIAL POSITION
The Income and Expenditure Account shows a net deficit for the year of £6,800. The Balance Sheet shows total funds of £3,409. The cash at bank shows a balance of £3,409.
## RESERVES AND RISK MANAGEMENT
The present level of funding is considered adequate to support the continuing operations, and the Trustees consider the financial position to be satisfactory with £1,160 of unrestricted reserves.
The Trustees actively review as part of their regular board meetings all potential areas of risk faced. Procedures are in place to identify and mitigate risks arising from adverse conditions.
Page 5 of 10
## **Independent examiner’s report to the Trustees of The Macadamia Trust**
I report on the accounts of the Trust for the period ended 31 December 2020, which are set out on pages 7 to 10.
## **Respective responsibilities of the Trustees and the examiner**
The Trustees are responsible for the preparation of the accounts. The Trustees consider that an independent examination is needed.
It is my responsibility to:
- examine the accounts;
- to state whether particular matters have come to my attention.
## **Basis of independent examiner’s report**
An examination includes a review of the accounting records kept by the association and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as committee members concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent examiner’s statement**
In connection with my examination, no matter has come to my attention:
- (1) which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting record; and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Colin Rawling 65 Water Lane, Wootton, Northampton, NN4 6HH
Date:
Page 6 of 10
## **THE NENO MACADAMIA TRUST**
## **INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 31 DECEMBER 2020**
|**NOTES**
**INCOME**
Donations including Gift Aid
1
Carbon Damage Mitigation Certificates
Nurseries Project
Drying Racks
Postage
Other Income
Interest Received
**TOTAL**
**EXPENDITURE**
Donation to HIMACUL
Carbon Damage Mitigation Certificates disbursement
Nurseries Project
Drying Racks
Development and Fundraising
Surveys
Printing and Stationery
Bank Charges and Fees
Just Giving Fees
Paypal Fees
Mapping
Software
Interest
**TOTAL**
**(Deficit)/Surplus for year**|**1 Jan 2020 to**
**31 Dec 2020**
**Restricted**
**Unrestricted**
**Total**
**£**
**£**
**£**
-
27,524
27,524
2,551
-
2,551
-
-
-
-
-
-
3
-
3
-
-
-
-
-
-
**2,554**
**27,524**
**30,078**
-
25,753
25,753
4,318
-
4,318
5,205
-
5,205
-
-
-
-
89
89
-
850
850
-
3
3
-
200
200
-
144
144
-
70
70
-
136
136
-
110
110
-
-
-
**9,523**
**27,355**
**36,878**
**(6,968)**
**168**
**(6,800)**|**2 Jan 2019 to**
**31 Dec 2019**
**Restricted**
**Unrestricted**
**Total**
**£**
**£**
**£**
-
21,632
21,632
7,238
-
7,238
10,000
-
10,000
430
-
430
-
12
12
-
-
-
-
-
-
**17,668**
**21,644**
**39,312**
-
22,327
22,327
3,533
-
3,533
2,342
-
2,342
430
-
430
-
1,450
1,450
-
-
-
-
-
-
-
412
412
-
216
216
-
-
-
-
130
130
-
-
-
-
-
-
**6,305**
**24,535**
**30,840**
**11,363**
**(2,891)**
**8,472**|
|---|---|---|
Page 7 of 10
## **THE NENO MACADAMIA TRUST**
## **BALANCE SHEET AS AT 31 DECEMBER 2019**
|**NOTES**
**CURRENT ASSETS**
Bank balance
CAF Balance
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
4
**NET CURRENT ASSETS/(LIABILITIES)**
**NET ASSETS/(LIABILITIES)**
**Financed by:**
**RESERVES**
General reserve
5
Restricted reserve - CDMC
5
Restricted reserve - CDMC Administrative
5
Restricted reserve - Nurseries Projects
Restricted reserve - Drying Racks
Balance at end of year
Chairman
Treasurer|**As at 31 Dec**
**2020**
**£**
3,409
-
3,409
-
3,409
3,409
1,160
96
-
2,153
-
3,409|**As at 31 Dec**
**2019**
**£**
11,209
-
11,209
(1,000)
10,209
10,209
180
2,371
-
7,658
-
10,209|
|---|---|---|
Page 8 of 10
## **THE NENO MACADAMIA TRUST**
## **NOTES TO ACCOUNTS FOR THE PERIOD ENDED 31 DECEMBER 2020**
## **1. Accounting Policies**
## **Accounting Convention**
The accounts have been prepared under the historical cost convention.
## **Income**
Donations are accounted for on a receipts basis. In respect of other income account is taken of known amounts due but unpaid.
## **Expenditure**
Expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all cost related to the category.Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Taxation**
The charity is exempt from tax on its charitable activities
## **Fund accounting**
The charity only has unrestricited funds, that funds can be used in accordance with the charitable objectivies at the discretion of the trustees.
## **2. Trustees' Remuneration and Benefits**
There were no trustees' remuneration or other benefits for the period ended 31 December 2020.
|Software development|**1 Jan 2020 to**
**31 Dec 2020**
**£**
-
-|**2 Jan 2019 to**
**31 Dec 2019**
**£**
1,000
1,000|
|---|---|---|
The trustee's did not receive any remuneration or benefits for their role as trustee during the period ended 31 December 2020 nor for the year ended 31 December 2019.
## **3. Debtors**
The only assets of the trust are bank accounts.
## **4. Creditors**
|Loan|**As at 31 Dec**
**2020**
**£**
-
-|**As at 31 Dec**
**2020**
**£**
1,000
1,000|
|---|---|---|
The loan is repayable on demand, and was repaid in full during the year to 31 December 2020.
Page 9 of 10
## **THE NENO MACADAMIA TRUST**
## **NOTES TO ACCOUNTS**
## **FOR THE PERIOD ENDED 31 DECEMBER 2020**
## **5. Movement of funds**
|**Reserves**
General reserve
Restricted reserve - CDMC
Restricted reserve - CDMC Administrative
Restricted reserve - Nurseries Projects
Restricted reserve - Drying Racks
Total funds|**As at 31**
**Dec 2019**
Movement
in funds
**As at 31**
**Dec 2020**
**£**
**£**
180
980
1,160
2,371
(2,275)
96
-
-
-
7,658
(5,505)
2,153
-
-
-
10,209
(6,800)
3,409|
|---|---|
Net movement in funds, included in the above are as follows:
|**Reserves**
General reserve
Restricted reserve - CDMC
Restricted reserve - CDMC Administration
Restricted reserve - Nurseries Projects
Restricted reserve - Drying Racks
Total funds|Incoming
resources
Resources
expended
Transfer
between
reserves
Movement
in funds
**£**
**£**
**£**
27,524
(27,355)
811
980
2,554
(4,318)
(511)
(2,275)
-
-
-
-
-
(5,205)
(300)
(5,505)
-
-
-
-
30,078
(36,878)
-
(6,800)|
|---|---|
The Restricted reserve - CDMC relates to the sale of Carbon Damage Mitigation Certificates to the general public, for the subsequent payment to HIMACUL for onward payment to farmers and associations in Malawi. 20% of the gross sale proceeds are retained by NMT for administration of the scheme and relevant expenses. This retained 20% is transferred to NMT as expended with any surplus shown in reserves.
|**6. Cashflow Statement**
Cash at bank at beginning of year
(Deficit)/Surplus from Income & Expenditure Account
Working Capital Movement:
Debtors (Increase)/Decrease
Creditors (Decrease)/Increase
Cash at bank at end of year|**As at 31**
**Dec 2020**
**£**
11,209
(6,800)
4,409
-
(1,000)
3,409|**As at 31**
**Dec 2019**
**£**
1,737
8,472
10,209
-
1,000.00
11,209|
|---|---|---|
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