COMPANY REGISTRATION NUMBER: 11645348 CHARITY REGISTRATION NUMBER: 1184845
Jaarama Foundation
Company Limited by Guarantee
Unaudited Financial Statements
31 October 2021
Jaarama Foundation
Company Limited by Guarantee
Financial Statements
Year ended 31 October 2021
| Page | |
|---|---|
| Trustees' annual report (incorporating the director's report) | 1 |
| Independent examiner's report to the trustees | 3 |
| Statement of financial activities (including income and expenditure account) | 4 |
| Statement of financial position | 5 |
| Notes to the financial statements | 6 |
Jaarama Foundation
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year ended 31 October 2021
The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 October 2021.
Reference and administrative details
Registered charity name Jaarama Foundation Charity registration number 1184845 Company registration number 11645348 Principal office and registered Time Central office 32 Gallowgate Newcastle Upon Tyne NE1 4BF The trustees R P M C Gestede H R Gestede A Hombourger A Thiam Independent examiner Susan Seaman, BA, FCA, CIOT Gresham House 5-7 St Paul's Street Leeds LS1 2JG
Structure, governance and management
The Charity was incorporated on 26 October 2018.
The Charity is governed in accordance with its Memorandum and Articles of Association, updated August 2019.
The Charity is a company limited by guarantee.
The members of the Charity may appoint subsequent directors through an ordinary resolution. The number of Trustees shall not be less than 2 but shall not be subject to any maximum. Any director of the Charity will automatically become a Trustee.
Where new Trustees are appointed as directors of the Charity, induction training appropriate to that individual's needs will be provided.
Objectives and activities
The principal activity of the company during the Year was that of raising funds to create and manage homes for orphans, specifically those in West African countries such as Benin and Guinea.
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Jaarama Foundation
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 October 2021
Achievements and performance
During the year building work started on the home in Benin that will be used by the charity, it is hoped the building will be completed in 2022.
Public Benefit
The Trustee Board reviews all work under taken by Jaarama Foundation to ensure that it is in line with the key objectives and hence it is deemed to be for the public benefit according to the Charity Commission guidance.
Financial review
The accompanying Financial Statements summarise the financial activities of the charity for the Period.
Plans for future periods
The building costs are funded by income raised by the charity and it is hoped additional funds will be raised in the next year to fund the completion and operational costs of the home in Benin.
Small company provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
11-Apr-2022
The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:
R P M C Gestede Trustee
H R Gestede Trustee
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Jaarama Foundation
Company Limited by Guarantee
Independent Examiner's Report to the Trustees of Jaarama Foundation
Year ended 31 October 2021
I report to the trustees on my examination of the financial statements of Jaarama Foundation ('the charity') for the year ended 31 October 2021.
Responsibilities and basis of report
As the trustees of the company (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 accounts of the company 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 accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the 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:
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accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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the financial statements do not accord with those records; or
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the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
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the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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.
Susan Seaman, BA, FCA, CIOT Independent Examiner
Gresham House 5-7 St Paul's Street Leeds LS1 2JG
11-Apr-2022
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Jaarama Foundation
Company Limited by Guarantee
Statement of Financial Activities (including income and expenditure account)
Year ended 31 October 2021
| Year ended 31 October 2021 | ||||
|---|---|---|---|---|
| 2021 | 2020 | |||
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Donations and legacies | 5 | 14,056 | 14,056 | 54,132 |
| -------------------------- | -------------------------- | -------------------------- | ||
| Total income | 14,056 | 14,056 | 54,132 | |
| ========================== | ========================== | ========================== | ||
| Expenditure | ||||
| Expenditure on charitable activities | 6,7 | 6,012 | 6,012 | 6,605 |
| -------------------------- | -------------------------- | -------------------------- | ||
| Total expenditure | 6,012 | 6,012 | 6,605 | |
| ========================== | ========================== | ========================== | ||
| -------------------------- | -------------------------- | -------------------------- | ||
| Net income and net movement in funds | 8,044 | 8,044 | 47,527 | |
| ========================== | ========================== | ========================== | ||
| Reconciliation of funds | ||||
| Total funds brought forward | 74,001 | 74,001 | 26,474 | |
| -------------------------- | -------------------------- | -------------------------- | ||
| Total funds carried forward | 82,045 | 82,045 | 74,001 | |
| ========================== | ========================== | ========================== |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 6 to 11 form part of these financial statements.
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Jaarama Foundation
Company Limited by Guarantee
Statement of Financial Position
31 October 2021
| 31 October 2021 | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Note | £ | £ | £ | £ | ||
| Fixed assets | ||||||
| Intangible assets | 12 | 3,200 | 4,800 | |||
| Tangible fixed assets | 13 | 74,990 | 64,990 | |||
| -------------------------- | -------------------------- | |||||
| 78,190 | 69,790 | |||||
| Current assets | ||||||
| Cash at bank and in hand | 4,405 | 4,761 | ||||
| Creditors:amounts falling due within | ||||||
| one year | 14 | 550 | 550 | |||
| --------------------- | --------------------- | |||||
| Net current assets | 3,855 | 4,211 | ||||
| -------------------------- | -------------------------- | |||||
| Total assets less current liabilities | 82,045 | 74,001 | ||||
| -------------------------- | -------------------------- | |||||
| Net assets | 82,045 | 74,001 | ||||
| ========================== | ========================== | |||||
| Funds of the charity | ||||||
| Unrestricted funds | 82,045 | 74,001 | ||||
| -------------------------- | -------------------------- | |||||
| Total charity funds | 15 | 82,045 | 74,001 | |||
| ========================== | ========================== |
For the year ending 31 October 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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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;
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
11-Apr-2022
These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by:
R P M C Gestede Trustee
H R Gestede Trustee
The notes on pages 6 to 11 form part of these financial statements.
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Jaarama Foundation
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 31 October 2021
1. General information
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Time Central, 32 Gallowgate, Newcastle Upon Tyne, NE1 4BF.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
Jaarama Foundation meets the definition of a public benefit entity under FRS 102.
Going concern
There are no material uncertainties about the charity's ability to continue.
Disclosure exemptions
The trustees have taken the exemption permitted by the SORP to not include a cash flow statement in the financial statements.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the date of the statement of financial position and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates. Details of these judgements are set out in the accounting policies.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
Incoming resources
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
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Jaarama Foundation
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 October 2021
3. Accounting policies (continued)
Incoming resources (continued)
- legacy income is recognised when receipt is probable and entitlement is established.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
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expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
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expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
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other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Website - 33% reducing balance
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
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Jaarama Foundation
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 October 2021
3. Accounting policies (continued)
Tangible assets (continued)
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
4. Limited by guarantee
The company is limited by guarantee to a value not exceeding £10 per member.
5. Donations and legacies
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Donations | ||||
| Donations | 14,056 | 14,056 | 54,132 | 54,132 |
| ========================== | ========================== | ========================== | ========================== | |
| Expenditure on charitable activities by fund type | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Support costs | 6,012 | 6,012 | 6,605 | 6,605 |
| ===================== | ===================== | ===================== | ===================== | |
| Expenditure on charitable activities by activity type | ||||
| Total funds | ||||
| Support costs | 2021 | Total fund 2020 | ||
| £ | £ | £ | ||
| Governance costs | 6,012 | 6,012 | 6,605 | |
| ===================== | ===================== | ===================== |
6. Expenditure on charitable activities by fund type
7. Expenditure on charitable activities by activity type
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Jaarama Foundation
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 October 2021
8. Net income
| Net income is stated after charging/(crediting): | |||
|---|---|---|---|
| 2021 | 2020 | ||
| £ | £ | ||
| Amortisation of intangible assets | 1,600 | 2,400 | |
| ===================== | ===================== | ||
| 9. | Independent examination fees | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Fees payable to the independent examiner for: | |||
| Independent examination of the financial statements | 550 | 550 | |
| ============= | ============= |
10. Staff costs
No salaries or wages have been paid to employees, including the members of the committee during the year.
The average head count of employees during the year was Nil (2020: Nil).
No employee received employee benefits of more than £60,000 during the year (2020: Nil).
11. Trustee remuneration and expenses
No remuneration was paid to trustees during the year.
12. Intangible assets
| Intangible | |
|---|---|
| assets | |
| £ | |
| Cost | |
| At 1 November 2020 and 31 October 2021 | 7,200 |
| ===================== | |
| Amortisation | |
| At 1 November 2020 | 2,400 |
| Charge for the year | 1,600 |
| --------------------- | |
| At 31 October 2021 | 4,000 |
| ===================== | |
| Carrying amount | |
| At 31 October 2021 | 3,200 |
| ===================== | |
| At 31 October 2020 | 4,800 |
| ===================== |
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Jaarama Foundation
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 October 2021
13. Tangible fixed assets
| Long leasehold | |
|---|---|
| property | |
| £ | |
| Cost | |
| At 1 November 2020 | 64,990 |
| Additions | 10,000 |
| -------------------------- | |
| At 31 October 2021 | 74,990 |
| ========================== | |
| Depreciation | |
| At 1 November 2020 and 31 October 2021 | – |
| ========================== | |
| Carrying amount | |
| At 31 October 2021 | 74,990 |
| ========================== | |
| At 31 October 2020 | 64,990 |
| ========================== | |
| Tangible assets relate to the orphanage building in Benin which is under construction at the year end. |
14. Creditors: amounts falling due within one year
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| £ | £ | ||||
| Accruals and deferred income | 550 | 550 | |||
| ============= | ============= | ||||
| 15. | Analysis of charitable funds | ||||
| Unrestricted funds | |||||
| At | At | ||||
| 1 November 202 | 31 October 202 | ||||
| 0 | Income | Expenditure | 1 | ||
| £ | £ | £ | £ | ||
| General funds | 74,001 | 14,056 | (6,012) | 82,045 |
|
| ========================== | ========================== | ===================== | ========================== | ||
| At | |||||
| 1 November 201 | At | ||||
| 9 | Income | Expenditure | 31 October 2020 | ||
| £ | £ | £ | £ | ||
| General funds | 26,474 | 54,132 | (6,605) | 74,001 |
|
| ========================== | ========================== | ===================== | ========================== |
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Jaarama Foundation
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 October 2021
16. Analysis of net assets between funds
| Unrestricted | Total Funds | |
|---|---|---|
| Funds | 2021 | |
| £ | £ | |
| Intangible assets | 3,200 | 3,200 |
| Tangible fixed assets | 74,990 | 74,990 |
| Current assets | 4,405 | 4,405 |
| Creditors less than 1 year | (550) | (550) |
| -------------------------- | -------------------------- | |
| Net assets | 82,045 | 82,045 |
| ========================== | ========================== | |
| Unrestricted | Total Funds | |
| Funds | 2020 | |
| £ | £ | |
| Intangible assets | 4,800 | 4,800 |
| Tangible fixed assets | 64,990 | 64,990 |
| Current assets | 4,761 | 4,761 |
| Creditors less than 1 year | (550) | (550) |
| -------------------------- | -------------------------- | |
| Net assets | 74,001 | 74,001 |
| ========================== | ========================== | |
| Capital commitments | ||
| Capital expenditure contracted for but not provided for in the financial statements is as follows: | ||
| 2021 | 2020 | |
| £ | £ | |
| Tangible fixed assets | 11,000 | 21,000 |
| ========================== | ========================== |
17. Capital commitments
18. Related parties
The land on which the charity is operating from in Benin is provided by one of the Trustees on a rent free basis.
Unrestricted donations of £10,000 (2020: £20,000) were received during the period from the Trustees.
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