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2021-03-31-accounts

Charity number: 1188309

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 7
Independent Examiner's Report 8 - 9
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Financial Statements 12 - 26

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees

Adrian Brown, Water and Solar Projects Gillian Barber, Medical projects Tony Cox, Chairman and Bursaries Brian Griffin, Vice Chairman and Bursaries Richard Davies, Fundraising and Website Coordinator Colin Gardner, Treasurer Eileen Eggington, Project Officer Julie Lupton, Secretary and Supporters' Database Margaret Campbell, Publicity and Safeguarding Martin Herrick, Medical Projects

Charity registered number

1188309

Principal office

The Cottage 72 North Street Biddenden Kent TN27 8AS www.malawimacs.org

Accountants

Venthams Chartered Accountants Millhouse 32 - 38 East Street Rochford Essex SS4 1DB

Bankers

Barclays Bank Leicester LE87 2BB

Page 1

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the financial statements of the charity for the year 1 April 2020 to 31 March 2021.

Objectives and activities

a. Policies and objectives

The main objective of the charity is to promote any charitable purpose in Malawi, including the advancement of education, the relief of poverty, sickness and distress, the preservation and protection of health and the advancement of Christian religion particularly by supporting the pastoral work of churches and the support of charitable Christian institutions in that country.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Activities undertaken to achieve objectives

Individuals and organisations are invited to donate to a General Fund which can be used for any charitable purpose in Malawi. If requested, donations can go to specific categories e.g. Education, Health, Community projects, Church support and Women's projects. MACS supports local groups and organisations but not individuals. The majority of requests for help come via the Anglican Dioceses in Malawi.

MACS builds and repairs classrooms and teachers' houses. The charity makes grants to hospitals and health centres for improvements to existing facilities and the building of staff houses. School children particularly girls are assisted in their education by funding school fees. MACS funds the repair and upgrading of clergy houses and the installation of roofs on well-built churches. Women's training groups can apply for funds. MACS assists in water projects, repairing dams and boreholes and building water tanks.

c. Main activities undertaken to further the charity's purposes for the public benefit

The trustees have referred to the Charity Commission's guidance on reporting on public benefit when reviewing our aims and objectives and planning activities. We work with the church and other Christian organisations in Malawi whose support is available to everyone in Malawi irrespective of their race, religion or nationality and the trustees have ensured that the activities undertaken will contribute to the aims and objectives of the charity. The trustees are therefore confident that the charity meets the public benefit requirements.

Page 2

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance

a. Governance

1. Meetings : Trustees met six times during the year. Because of Covid-19 restrictions, all meetings were held virtually using Zoom. The purpose of all the trustees’ meetings was to monitor projects, allocate funds, approve new projects etc.

A working group was set up to manage Covid-19 emergency funds and appeals from Malawi. This group met twice. Decisions taken by the group were noted at main meetings.

Additional working group meetings were held to work on the drawing up of a new constitution for MACS CIO and on the practicalities of moving to a new legal status.

The AGM and Annual Supporters’ Day was held virtually, using Zoom on 19th September 2020. With 37 in attendance, this was a most successful event and enabled us to include interviews with people in Malawi. It was an inclusive event allowing supporters from all over the UK to participate without the need to travel to London.

By holding all meetings virtually, a considerable amount of our UK expenses was saved: no rental costs for meeting venues, no trustees’ travel expenses etc.

2. Trustees : Trustees remained unchanged throughout the year.

3. Communications with supporters: Margaret Campbell produced two informative newsletters which went out in August 2020 and February 2021. These both drew attention to the change of legal status from MACS to MACS CIO which was undertaken during the year. Supporters have all been contacted with new bank details for Standing Orders and we have gone through the process of updating everyone’s Gift Aid declarations as well. Supporters have been encouraged to close their Standing orders to this charity and set up new Standing orders for MACS CIO.

The Annual Gift List was produced in the autumn.

Our 2020-21 Annual appeal to raise funds for solar back up in rural health centres in the Diocese of Lake Malawi set a modest target which was quickly reached. It was agreed to extend this project to the Diocese of Upper Shire Health Centres and at the end of the financial year we were still in the process of raising additional funds for this.

4. GDPR compliance: We continue to maintain a list of all supporters and those who receive publications either by email or post. The MACS privacy policy is available on our website and is reviewed annually.

5. Safeguarding: In line with Charity Commission requirements, trustees have drawn up and adopted Safeguarding policies and procedures for Trustees and for our Malawi representative. All trustees visiting Malawi are now required to have a Disclosure and Barring certificate as well as safeguarding references. Margaret Campbell is our Safeguarding Trustee. Jointly with the wider Anglican Communion we continue to encourage the church in Malawi to introduce robust Safeguarding practices. Schools in Malawi have been asked to share copies of their safeguarding policies with MACS. Little progress was made with this during the pandemic but in March 2021 it was agreed all schools and beneficiaries be contacted once more to raise awareness of the need for Safeguarding policies and practices to be in place in Malawi.

6. Remuneration of trustees’ expenses : Trustees claim travel expenses to MACS meetings on an annual basis. However, no meetings were held in London in the 2020-21 Financial year. Visits to Malawi are in line with current agreed policy and details of all claims are in the Annual financial report. No visits were made and we are still in the process of reclaiming airfares paid in 2020 for three cancelled trips.

Page 3

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

b. Projects

1. Applications: During the year a total of £218,716 was granted to new projects.

2. Support for:

( a) Internal auditing: A programme jointly funded with USPG and the Diocese of Birmingham has been funding internal audits in Diocesan institutions. This programme, however, did not get carried out due to Covid-19 restrictions in Malawi when travel was not encouraged.

3. Monitoring:

(a) MACS Representative: In Malawi our representative, Grafiud Tione, has worked throughout the year facilitating the smooth running of projects, disbursing funds, checking on progress, giving advice locally and advising trustees. Grafiud helps the recipients of MACS grants such as individual schools and community groups to open accounts and to manage funds awarded by MACS for particular projects. Trustees remain confident that every attempt is made to ensure funds are spent appropriately. Grafiud’s expenses are reviewed and adjusted annually in March. Care has been taken to ensure Grafiud did not travel during the height of the pandemic and that he understood he was only expected to travel to monitor projects as and when he felt it was safe to do so.

(b) Expert advice: MACS has continued to make use of local Malawian professionals working alongside Grafiud in assessing potential projects, drawing up costed plans, tender documents and in monitoring work. Such partnerships are very helpful and the additional professional backing assures trustees in the UK and our overseas partners of the quality and sustainability of the work carried out in Malawi.

(c) 2020 Project Officer’s annual trip : this trip did not take place due to Covid-19 restrictions. A trip for 2021 is not currently being planned for the same reason.

4. Health £144,672

MACS is happy to consider a wide range of requests including new buildings, renovations, help with electricity and water, training and financial management. However, very few requests came in the last year apart from appeals for PPE and cleaning materials. These were dealt with by making some blocks grants to institutions using the Covid-19 emergency funds we held.

Page 4

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

5. Education £33,485

MACS supports the education of young people in Malawi through the paying of fees in Bursary Schemes as well as supporting in practical ways with building classrooms and the provision of educational materials etc.

Examples of how MACS provides support are:

6. Parish and Diocesan Support £33,109

Examples of grants made within the last year:

7. Community and Training £7,450

c. Fundraising

We are especially grateful to all our supporters who have continued to donate and support the work of MACS throughout this most unusual and difficult of years.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

Page 5

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

b. Reserve policy

The trustees have agreed that unrestricted reserves should be maintained at a level equivalent to 3 months expenditure excluding grants. This would indicate that the minimum reserves at 31st March 2021 should be £5,501. The actual unrestricted reserves amounted to £32,348.

c. Financial summary

The income for the year was £111,874 as compared to the previous year of £190,750. The expenditure for the year was £240,722, as compared to £153,262. As a consequence, the deficit was £128,848, compared to a surplus of £37,488 in the previous year.

The trustees allocate grants on the basis of the receipt of suitable applications and meet regularly throughout the year to review applications and made grants accordingly.

Grants of £218,716 (2020: £117,930) were approved during the year. At the end of the year £147,956 (2020: £117,930) had not been distributed. The trustees anticipate that these funds will be disbursed by the end of the current year.

d. Principal funding

We are extremely grateful to all our supporters who raise funds and show interest and support throughout the year. Colin Gardner has continued to monitor the use of funds donated through the Gift List.

e. Our supporters

As always, we remain indebted to all MACS supporters, be they individuals, churches, schools or other groups of people. Your financial as well as your prayerful support are greatly appreciated. Together with the people of Malawi, we are working towards a better future.

Structure, governance and management

a. Constitution

Malawi Association for Christian Support has been a registered charity since 2nd September 1993 (number 1025616). However, the trustees considered that this model was not suitable to today’s methods of operating and decided that the conversion of the charity to Charitable Incorporated Organisation (CIO) was the appropriate way to proceed.

Consequently, at their meeting on 8th April 2019 the charity trustees agreed to convert the charity into a CIO. At their meeting on 18th November 2019 the trustees approved the constitution of the CIO and it was signed on 28th November 2019 by four of the trustees on behalf of all the trustees.

An application was submitted to the Charity Commission for registration of the CIO and this was issued on 3rd March 2020 with the number 1188309. An application was the made to the Charity Commission for approval for the transfer of the undertaking, assets and liabilities of the charity to the CIO. This was received on 12th August 2020.

At the Annual General Meeting of the charity held on 19th September 2020 approval was given for the transfer to be made on 1st January 2021 and the transfer was made on that date.

The charity continues to be in receipt of donations by way of standing orders and the trustees are continuing to persuade donors to transfer their donations to the bank account in the name of the CIO. Once this has been achieved the charity will be closed.

Page 6

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the CIO Foundation.

c. Organisational structure and decision-making policies

Trustees claim travel expenses to MACS meetings on an annual basis. Visits to Malawi are in line with current agreed policy and details of all claims are in the Annual financial report.

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the CIO Foundation. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on their behalf by:

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

Julie Lupton Trustee Date:

Page 7

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2021

Independent Examiner's Report to the Trustees of Malawi Association for Christian Support CIO ('the charity')

I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 March 2021.

Responsibilities and Basis of Report

As the Trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Page 8

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Independent Examiner's Statement

Your attention is drawn to the fact that the charity has prepared the accounts in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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:

  1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. 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.

This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's Trustees as a body, for my work or for this report.

Signed: Stuart Harrison FCA

Dated:

Venthams

Chartered Accountants Millhouse 32 - 38 East Street Rochford Essex SS4 1DB

Page 9

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
3
Investments
4
Total income
Expenditure on:
Charitable activities
5
Total expenditure
Net (expenditure)/income
Transfers between funds
14
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
42,598
275
42,873
43,289
43,289
(416)
15,326
14,910
17,438
14,910
32,348		 Restricted
funds
2021
£
69,001
-
69,001
197,433
197,433
(128,432)
(15,326)
(143,758)
192,598
(143,758)
48,840		 Total
funds
2021
£
111,599
275
111,874
240,722
240,722
(128,848)
-
(128,848)
210,036
(128,848)
81,188		 Total
funds
2020
£
189,041
1,709
190,750
153,262
153,262
37,488
-
37,488
172,548
37,488
210,036

Page 10

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2021

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one
year
13
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
14
Unrestricted funds
14
Total funds		 6,679
232,268
238,947
(159,475)		 2021
£
1,716
1,716
79,472
81,188
81,188
48,840
32,348
81,188		 18,216
316,202
334,418
(129,509)		 2020
£
5,127
5,127
204,909
210,036
210,036
192,598
17,438
210,036

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................ Tony Cox Chairman Date:

Page 11

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

Malawi Association for Christian Support CIO is an unincorporated charity registered in England and Wales. Its principal office address is The Cottage, 72 North Street, Biddenden, Kent TN27 8AS.

During the year, the activities of the charity were transferred from an unincorporated entity (charity number 1025616) to a CIO. These accounts have therefore been prepared on a merger basis and the comparative figures are those of the unincorporated entity from which the activity was transferred.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Malawi Association for Christian Support CIO meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

Page 12

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.2 Income

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

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charity, can be reliably measured.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the charity's accounting policies.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

2.3 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

Page 13

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.3 Expenditure (continued)

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.4 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.5 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Motor vehicles

20% straight line

2.6 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.7 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 14

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.8 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.9 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.10 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 15

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. Income from donations and legacies

Unrestricted
funds
2021
Restricted
funds
2021
£
£
Donations
42,598
69,001
Unrestricted
funds
2020
Restricted
funds
2020
£
£
Donations
48,548
140,493
Investment income
Unrestricted
funds
2021
£
Investment income - local cash
202
Investment income - foreign cash
73
Total 2021
275
Unrestricted
funds
2020
£
Investment income - local cash
1,312
Investment income - foreign cash
397
Total 2020
1,709		 Total
funds
2021
£
111,599
Total
funds
2020
£
189,041
Total
funds
2021
£
202
73
275
Total
funds
2020
£
1,312
397
1,709

4. Investment income

Page 16

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

5. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2021
£
Grant making activities
43,289
Unrestricted
funds
2020
£
Grant making activities
28,238		 Restricted
funds
2021
£
197,433
Restricted
funds
2020
£
125,024		 Total
funds
2021
£
240,722
Total
funds
2020
£
153,262

6. Analysis of expenditure by activities

Grant making activities
Grant making activities		 Activities
undertaken
directly
2021
£
20,782
Activities
undertaken
directly
2020
£
25,567		 Grant
funding of
activities
2021
£
218,716
Grant
funding of
activities
2020
£
127,119		 Support
costs
2021
£
1,224
Support
costs
2020
£
576		 Total
funds
2021
£
240,722
Total
funds
2020
£
153,262

Page 17

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Analysis of expenditure by activities (continued)

Analysis of direct costs

Depreciation
Malawian representative retainer
Malawian representative travelling
Malawian representative telephone
Bank charges
Paypal charges
Printing and stationery
Sundry expenses
Total 2021
Depreciation
Malawian representative retainer
Malawian representative travelling
Malawian representative telephone
Project officer trip and travel grants
Room hire
Bank charges
Paypal charges
Printing and stationary
Postage
Sundry expenses
Total 2020		 Grant
making
activities
2021
£
3,411
6,735
7,511
903
378
60
1,711
73
20,782
Grant
making
activities
2020
£
3,411
6,101
7,567
1,022
4,337
866
484
46
484
1,072
177
25,567		 Total
funds
2021
£
3,411
6,735
7,511
903
378
60
1,711
73
20,782
Total
funds
2020
£
3,411
6,101
7,567
1,022
4,337
866
484
46
484
1,072
177
25,567

Page 18

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Analysis of expenditure by activities (continued)

Analysis of support costs

Governance costs
Governance costs
Analysis of grants
Grant making activities
Grants making activities		 Grant
making
activities
2021
£
1,224
Grant
making
activities
2020
£
576
Grants to
Institutions
2021
£
218,716
Grants to
Institutions
2020
£
127,119		 Total
funds
2021
£
1,224
Total
funds
2020
£
576
Total
funds
2021
£
218,716
Total
funds
2020
£
127,119

7. Analysis of grants

The charity has made the following material grants to institutions during the year:

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MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Analysis of grants (continued)

Name of institution
Medical Health
Bursaries
Donald Arden Bursary Fund
Donald Arden Memorial Fund
Gifts menu
Vocational courses for women
St Lukes Hospital
Post Covid Support
Boreholes & water
Flood relief
Solar Power
Kaphiridzinja Cottage
Magomero classroom renovations
Education buildings and classrooms
St Martin's staff houses
Nkope Health Centre
St Anne's Hospital
Other grants to institutions		 2021
£
12,094
8,211
2,317
2,642
1,046
-
17,398
25,670
17,650
-
22,423
5,000
3,195
-
11,000
-
87,753
2,317
218,716
218,716		 2020
£
1,250
14,546
4,270
4,433
2,232
1,384
-
-
-
6,925
-
-
5,191
72,382
8,940
2,500
971
2,095
127,119
127,119

8. Analysis of expenditure by percentage

Grants
Malawi projects supervision costs
UK expenses		 2021
£
218,716
19,336
2,670
240,722		 2021
%
90.86
8.03
1.11
100.00		 2020
2020
£
%
127,119
82.94
22,501
14.68
3,642
2.38
153,262
100.00

9. Independent examiner's remuneration

The independent examiner's remuneration amounts to an independent examiner fee of £1,224 ( 2020 - £576 ).

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MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, expenses totalling £ NIL were reimbursed or paid directly to Trustee (2020 - £4,337 to 7 Trustees) .

11.
Tangible fixed assets
Cost or valuation
At 1 April 2020
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Motor
vehicles
£
17,067
17,067
11,940
3,411
15,351
1,716
5,127

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MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12. Debtors

Due within one year
Prepayments and accrued income
Tax recoverable		 2021
£
1,579
5,100
6,679		 2020
£
2,632
15,584
18,216

13. Creditors: Amounts falling due within one year

Accruals and deferred income
Grants accrued - institutional		 2021
£
11,519
147,956
159,475		 2020
£
11,579
117,930
129,509

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MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Motor Vehicle
General funds
General Funds
Total Unrestricted funds
Restricted funds
Medical Health
St Luke's Hospital
St Luke's - Operating Theatre
St Martin's Hospital
Sponsor-a-bed
St Martin's staff houses
St Anne's Hospital
Bursaries and school fees
Solar power for health centre
Classrooms
Donald Arden Bursary Fund
Donald Arden Memorial Fund
Gifts list
Vocational courses for women
Chilema equipment
Magomero
Post Covid Support Fund
Other restricted fund projects
Total of funds		 Balance at 1
April 2020
£
17,067
371
17,438
9,481
950
29,386
600
1,941
5,251
87,753
2,509
-
8,457
11,078
10,004
4,842
2,662
3,219
1,572
10,000
2,893
192,598
210,036		 Income
£
-
42,873
42,873
15,213
625
-
800
436
-
-
5,025
24,344
500
3,376
-
3,700
30
-
1,941
3,218
9,793
69,001
111,874		 Expenditure
£
-
(43,289)
(43,289)
(12,094)
-
(5,999)
-
(2,000)
(11,000)
(87,753)
(8,211)
(22,423)
150
(2,317)
(2,642)
(1,046)
-
-
(3,195)
(25,670)
(13,233)
(197,433)
(240,722)		 Transfers
in/out
£
-
15,326
15,326
(2,500)
-
(23,387)
-
234
5,749
-
2,676
2,425
(9,107)
-
-
(5,377)
(280)
(1,000)
-
12,452
2,789
(15,326)
-		 Balance at
31 March
2021
£
17,067
15,281
32,348
10,100
1,575
-
1,400
611
-
-
1,999
4,346
-
12,137
7,362
2,119
2,412
2,219
318
-
2,242
48,840
81,188

Page 23

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Motor Vehicle
General funds
General Funds
Total Unrestricted funds
Restricted funds
Medical Health
St Luke's Hospital
St Luke's - Operating Theatre
St Martin's Hospital
Sponsor-a-bed
St Martin's staff houses
St Anne's Hospital
Education Buildings
St Michael's School
Bursaries and school fees
Classrooms
Donald Arden Bursary Fund
Donald Arden Memorial Fund
Gifts list
Vocational courses for women
Chilema equipment
Magomero
Post Covid Support Fund
Other restricted fund projects
Total of funds		 Balance at
1 April 2019
£
17,067
1,709
18,776
-
-
4,801
-
1,243
14,191
88,724
-
1,600
-
-
11,036
14,438
4,571
3,561
2,860
-
-
6,747
153,772
172,548		 Income
£
-
55,169
55,169
10,731
950
26,565
600
438
-
-
2,887
1,200
8,660
70,353
3,936
-
4,111
-
359
3,649
-
1,142
135,581
190,750		 Expenditure
£
-
(28,238)
(28,238)
(1,250)
-
-
-
-
(8,940)
(971)
(10,723)
-
(14,921)
(61,659)
(3,894)
(4,434)
(2,232)
(1,384)
-
(5,191)
-
(9,425)
(125,024)
(153,262)		 Transfers
in/out
£
-
(28,269)
(28,269)
-
-
(1,980)
-
260
-
-
7,836
(2,800)
8,770
(237)
-
-
(1,608)
485
-
3,114
10,000
4,429
28,269
-		 Balance at
31 March
2020
£
17,067
371
17,438
9,481
950
29,386
600
1,941
5,251
87,753
-
-
2,509
8,457
11,078
10,004
4,842
2,662
3,219
1,572
10,000
2,893
192,598
210,036

Page 24

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Statement of funds (continued)

15. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds		 Balance at 1
April 2020
£
17,067
371
192,598
210,036
Balance at
1 April 2019
£
17,067
1,709
153,772
172,548		 Income
£
-
42,873
69,001
111,874
Income
£
-
55,169
135,581
190,750		 Expenditure
£
-
(43,289)
(197,433)
(240,722)
Expenditure
£
-
(28,238)
(125,024)
(153,262)		 Transfers
in/out
£
-
15,326
(15,326)
-
Transfers
in/out
£
-
(28,269)
28,269
-		 Balance at
31 March
2021
£
17,067
15,281
48,840
81,188
Balance at
31 March
2020
£
17,067
371
192,598
210,036
Summary of funds - prior year
Designated funds
General funds
Restricted funds

16. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
1,716
Current assets
190,107
Creditors due within one year
(159,475)
Total
32,348		 Restricted
funds
2021
£
-
48,840
-
48,840		 Total
funds
2021
£
1,716
238,947
(159,475)
81,188

Page 25

MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2020
£
5,127
23,890
(11,579)
17,438		 Restricted
funds
2020
£
-
310,528
(117,930)
192,598		 Total
funds
2020
£
5,127
334,418
(129,509)
210,036

17. Related party transactions

During the year, the trustees gave a total of £10,137 (2020: £18,084) in donations to the charity.

Page 26