**Charity number: 1188309**
## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **UNAUDITED**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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 2022**
## **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 Janice Price (appointed 19 July 2021)
## **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 2022**
The Trustees present their annual report together with the financial statements of the charity for the year 1 April 2021 to 31 March 2022.
## **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 2022**
## **Achievements and performance**
## **a. Governance**
**1. Meetings** : Trustees meet to monitor projects, allocate funds, approve new projects, review policies and address issues of strategy. We have met six times since our last Annual Supporters Day. Five meetings have been on Zoom, in preference to coming into London using public transport and then we met in person, in London, in September 2022. By holding meetings virtually, a considerable amount of our UK expenses has been saved: no rental costs for meeting venues, no trustees’ travel expenses etc.
The Covid working group set up in 2020 did not need to meet at all in the last year as no requests were made for help with Covid prevention.
Following the success of the virtual Annual meeting of Supporters in 2021 we agreed to continue to meet on Zoom in 2022 but that we are likely to revert to an in-person meeting in 2023. Blended meetings are tricky to manage. We hope to take into consideration the views of many of our supporters before we make a final decision on this matter.
**2. Trustees** : Trustees remained unchanged throughout the year.
**3. Communications with supporters:** Margaret Campbell has produced two newsletters which went out in February 2022 and the most recent one in September 2022. We also produced our 2022 Appeal and, more recently a legacy leaflet that has been distributed to all our supporters. We have continued to contact supporters with new bank details for Standing Orders encouraging them to close their Standing Orders to Santander and set up new ones for MACS CIO with Barclays.
The Annual Gift List was produced in the autumn 2021 in a new format and resulted in limited support. We decided to limit the Gift List to one specific item in 2022-23 to see if this is more popular. This will feature Pencils for Schools.
Our 2022 appeal to raise funds for solar back up for St Michael’s Girls’ Secondary school was well supported and the work was all carried out during the recent school holidays.
**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:** Margaret Campbell is our Safeguarding Trustee. With her guidance, and 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. Jointly with the wider Anglican Communion we have continued to encourage the church in Malawi to introduce robust Safeguarding practices. Schools in Malawi have now shared copies of their safeguarding policies with MACS.
**6. Remuneration of trustees’ expenses** : Trustees may claim travel expenses to MACS meetings on an annual basis but no meetings were held in London in the 2021-2022 Financial year. Visits to Malawi are in line with current agreed policy but no visits have been made to Malawi since we last reported to supporters in 2021. Details of all claims appear in the Annual financial report. We were able eventually to recover the airfares from the agent for three trustees who were forced to cancel their trip to Malawi in 2020.
Page 3
**MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Achievements and performance (continued)**
## **b. Projects**
**1. Applications:** During the past year a total of **£83,169** was granted to new projects. We have had far fewer applications than in the past.
## **2. Monitoring:**
**(a) MACS Representative in Malawi:** Grafiud Tione, our in-country representative, has continued to work 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.
**(b) Care was taken** to ensure Grafiud did not feel obliged to 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. Thanks to the joys of Zoom and WhatsApp, we are able to keep in much more regular contact with Grafiud now and this is really helpful.
**(c) Expert advice:** MACS has continued to use local Malawian professionals working alongside Grafiud to assess 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.
**(d) 2021 and 2022 Project Officer’s annual trip:** these trips have not taken place due to Covid-19 restrictions. Trustees agreed there are too many risks involved in making a trip this year with Covid and travel disruptions. Our Project Officer is planning to make a trip to Malawi in May 2023 along with perhaps two other trustees.
## **3. Health**
MACS is happy to consider a wide range of requests including new buildings, renovations, help with electricity and water, training and financial management.
The major project completed in the last year was the renovation of the operating theatre at St Anne’s Nkhotakota. Even more recently we have been able to put £10,000 towards the purchase of much needed equipment for maternity and neonatal care at the same hospital.
The renovation of two staff houses at St Martin’s hospital, Malindi, has also been undertaken. We prefer to renovate houses as there is limited land available on the site for new builds. Improved housing helps with staff retention.
## **4 Education**
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 providing educational materials etc.
Fees have been paid for 64 students, the majority of whom are girls, at Malosa Secondary School, St Michael’s Girls’ Secondary School, Bishop Mtekateka Secondary School and various Community Day Secondary Schools (CDSS). We have recently reviewed the Bursary scheme to ensure that we can continue to commit to paying for a full four years’ education for students once they enter the Secondary education system.
## **5 Parish and Diocesan Support**
Malawi suffered devastating floods this year and £2,000 was sent to the Diocese of Southern Malawi through the Anglican Council of Malawi (ACM) to help with relief efforts.
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**MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Achievements and performance (continued)**
## **6. Community and Training**
Chilema Ecumenical Training Centre continues to train students from rural areas. Many of them are women. We agreed to increase support for students this year: 90% of the fees for 10 students are now paid for both courses running within the year ie the January and the July intake. We have also undertaken recently to pay for the renovation of an existing room to become a temporary library while plans are drawn up to provide a bespoke library and additional classroom. This will enable Chilema to receive formal course accreditation within Malawi thus raising its profile.
## **c. Fundraising**
We are especially grateful to all our supporters who have continued to donate and support the work of MACS throughout the past year. In particular, one of our trustees, Richard Davies, has recently raised well over £2500 for education by being sponsored for 50 days to use only technology that was available to him when he married, 50 years ago. We are most grateful to Richard and Wylva, his wife, for completing this fundraising challenge. It has meant our Website remained unchanged for some time but Richard is now back online and updating everything. If anyone has come good ideas for fundraising, please let us know so we can support you in any way.
## **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.
## **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 2022 should be £4,094. The actual unrestricted reserves amounted to £30,504.
## **c. Financial summary**
The income for the year was £133,711 as compared to the previous year of £111,874. The expenditure for the year was £99,545, as compared to £240,722. As a consequence, the surplus was £34,166, compared to a deficit of £128,848 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 £83,169 (2021: £218,716) were approved during the year. At the end of the year £42,523 (2021: £147,956) 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.
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**MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **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.
## **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.
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**MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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: 21 November 2022
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## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2022**
## **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 2022.
## **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.
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**MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **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: 9 January 2023
## **Venthams**
Chartered Accountants Millhouse 32 - 38 East Street Rochford Essex SS4 1DB
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## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022**
|**Note**
**Income from:**
Donations and legacies
3
Investments
4
**Total income**
**Expenditure on:**
Charitable activities
5
**Total expenditure**
**Net income/(expenditure)**
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**
**2022**
**£**
**87,837**
**140**
**87,977**
**29,556**
**29,556**
**58,421**
**(60,265)**
**(1,844)**
**32,348**
**(1,844)**
**30,504**|**Restricted**
**funds**
**2022**
**£**
**45,734**
**-**
**45,734**
**69,989**
**69,989**
**(24,255)**
**60,265**
**36,010**
**48,840**
**36,010**
**84,850**|**Total**
**funds**
**2022**
**£**
**133,571**
**140**
**133,711**
**99,545**
**99,545**
**34,166**
**-**
**34,166**
**81,188**
**34,166**
**115,354**|_Total_
_funds_
_2021_
_£_
_111,599_
_275_
_111,874_
_240,722_
_240,722_
_(128,848)_
_-_
_(128,848)_
_210,036_
_(128,848)_
_81,188_|
|---|---|---|---|---|
Page 10
## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2022**
|**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**|**6,516**
**167,973**
**174,489**
**(59,135)**|**2022**
**£**
**-**
**-**
**115,354**
**115,354**
**115,354**
**84,850**
**30,504**
**115,354**|_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_|
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
**Tony Cox** Chairman Date: 21 November 2022
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**MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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.
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**MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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.
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**MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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.
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**MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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.
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## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **3. Income from donations and legacies**
|**Unrestricted**
**funds**
**2022**
**Restricted**
**funds**
**2022**
**£**
**£**
Donations
87,837
45,734
_Unrestricted_
_funds_
_2021_
_Restricted_
_funds_
_2021_
_£_
_£_
Donations
_42,598_
_69,001_
**Investment income**
**Unrestricted**
**funds**
**2022**
**£**
Investment income - local cash
30
Investment income - foreign cash
110
**Total 2022**
140
_Unrestricted_
_funds_
_2021_
_£_
Investment income - local cash
_202_
Investment income - foreign cash
_73_
_Total 2021_
_275_|**Total**
**funds**
**2022**
**£**
**133,571**|
|---|---|
||_Total_
_funds_
_2021_
_£_
_111,599_|
||**Total**
**funds**
**2022**
**£**
**30**
**110**
**140**|
||_Total_
_funds_
_2021_
_£_
_202_
_73_
_275_|
## **4. Investment income**
Page 16
## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **5. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|**Unrestricted**
**funds**
**2022**
**£**
Grant making activities
29,556
_Unrestricted_
_funds_
_2021_
_£_
Grant making activities
_43,289_|**Restricted**
**funds**
**2022**
**£**
69,989
_Restricted_
_funds_
_2021_
_£_
_197,433_|**Total**
**2022**
**£**
**99,545**|
|---|---|---|
|||_Total_
_2021_
_£_
_240,722_|
## **6. Analysis of expenditure by activities**
|Grant making activities
Grant making activities|**Activities**
**undertaken**
**directly**
**2022**
**£**
16,052
_Activities_
_undertaken_
_directly_
_2021_
_£_
_20,782_|**Grant**
**funding of**
**activities**
**2022**
**£**
83,169
_Grant_
_funding of_
_activities_
_2021_
_£_
_218,716_|**Support**
**costs**
**2022**
**£**
324
_Support_
_costs_
_2021_
_£_
_1,224_|**Total**
**funds**
**2022**
**£**
**99,545**|
|---|---|---|---|---|
|||||_Total_
_funds_
_2021_
_£_
_240,722_|
Page 17
## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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 2022**
Depreciation
Malawian representative retainer
Malawian representative travelling
Malawian representative telephone
Bank charges
Paypal charges
Printing and stationary
Sundry expenses
_Total 2021_|**Grant**
**making**
**activities**
**2022**
**£**
1,716
6,903
5,092
800
396
33
1,058
54
16,052
_Grant_
_making_
_activities_
_2021_
_£_
_3,411_
_6,735_
_7,511_
_903_
_378_
_60_
_1,711_
_73_
_20,782_|**Total**
**funds**
**2022**
**£**
**1,716**
**6,903**
**5,092**
**800**
**396**
**33**
**1,058**
**54**
**16,052**|
|---|---|---|
|||_Total_
_funds_
_2021_
_£_
_3,411_
_6,735_
_7,511_
_903_
_378_
_60_
_1,711_
_73_
_20,782_|
Page 18
## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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**
**2022**
**£**
324
_Grant_
_making_
_activities_
_2021_
_£_
_1,224_
**Grants to**
**Institutions**
**2022**
**£**
83,169
_Grants to_
_Institutions_
_2021_
_£_
_218,716_|**Total**
**funds**
**2022**
**£**
**324**|
|---|---|---|
|||_Total_
_funds_
_2021_
_£_
_1,224_|
|||**Total**
**funds**
**2022**
**£**
**83,169**|
|||_Total_
_funds_
_2021_
_£_
_218,716_|
## **7. Analysis of grants**
The charity has made the following material grants to institutions during the year:
Page 19
## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **7. Analysis of grants (continued)**
|**Name of institution**
Medical Health
Education
Bursaries
Donald Arden Bursary Fund
Donald Arden Memorial Fund
Gifts menu
Vocational courses for women
St Lukes Hospital
Post Covid Support
Boreholes & water
Chilema Equipment
Solar Power
Kaphiridzinja Cottage
Magomero classroom renovations
Mosquito nets
St Martin's staff houses
Magomero
St Anne's Hospital
Other grants to institutions|**2022**
**£**
**500**
**5,843**
**11,422**
**4,710**
**3,954**
**631**
**3,181**
**1,000**
**-**
**-**
**4,500**
**12,000**
**-**
**-**
**622**
**20,000**
**1,282**
**344**
**13,180**
**83,169**
**83,169**|_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_|
## **8. Analysis of expenditure by percentage**
|Grants
Malawi projects supervision costs
UK expenses|**2022**
**£**
**83,169**
**15,091**
**1,285**
**99,545**|**2022**
**%**
**83.55**
**15.16**
**1.29**
**100.00**|_2021_
_2021_
_£_
_%_
_218,716_
_90.86_
_19,336_
_8.03_
_2,670_
_1.11_
_240,722_
_100.00_|
|---|---|---|---|
.
## **9. Independent examiner's remuneration**
The independent examiner's remuneration amounts to an independent examiner fee of £612 ( _2021_ - _£1,224_ ).
Page 20
## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **10. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2021 - £NIL)_ .
During the year ended 31 March 2022, expenses totalling _£_ NIL were reimbursed or paid directly to Trustees _(2021 - £NIL_ ).
|**11.**
**Tangible fixed assets**
**Cost or valuation**
At 1 April 2021
At 31 March 2022
**Depreciation**
At 1 April 2021
Charge for the year
At 31 March 2022
**Net book value**
At 31 March 2022
_At 31 March 2021_|**Motor**
**vehicles**
**£**
**17,067**|
|---|---|
||**17,067**|
||**15,351**
**1,716**|
||**17,067**|
||**-**|
||_1,716_|
Page 21
## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **12. Debtors**
|**Due within one year**
Prepayments and accrued income
Tax recoverable|**2022**
**£**
**2,267**
**4,249**
**6,516**|_2021_
_£_
_1,579_
_5,100_|
|---|---|---|
|||_6,679_|
## **13. Creditors: Amounts falling due within one year**
|Accruals and deferred income
Grants accrued - institutional|**2022**
**£**
**16,612**
**42,523**
**59,135**|_2021_
_£_
_11,519_
_147,956_|
|---|---|---|
|||_159,475_|
Page 22
## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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 Martin's Hospital
Sponsor-a-bed
Bursaries and school fees
Solar power for health centre
Donald Arden Bursary Fund
Donald Arden Memorial Fund
Gifts list
Vocational courses for women
Chilema equipment
St Michael's solar power
Other restricted fund projects
**Total of funds**|**Balance at 1**
**April 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**
**-**
**2,560**
**48,840**
**81,188**|**Income**
**£**
**-**
**87,977**
**87,977**
**14,889**
**3,000**
**150**
**475**
**4,675**
**125**
**4,125**
**-**
**2,391**
**-**
**-**
**11,850**
**4,054**
**45,734**
**133,711**|**Expenditure**
**£**
**-**
**(29,556)**
**(29,556)**
**(500)**
**(1,000)**
**(20,000)**
**-**
**(11,422)**
**(12,000)**
**(4,710)**
**(3,954)**
**(975)**
**(3,182)**
**(4,500)**
**-**
**(7,746)**
**(69,989)**
**(99,545)**|**Transfers**
**in/out**
**£**
**1,695**
**(61,960)**
**(60,265)**
**(18,231)**
**305**
**18,450**
**537**
**31,588**
**7,529**
**-**
**-**
**(3,091)**
**2,641**
**2,281**
**13,994**
**4,262**
**60,265**
**-**|**Balance at**
**31 March**
**2022**
**£**
**18,762**|
|---|---|---|---|---|---|
||||||**11,742**|
||||||**30,504**|
||||||**6,258**
**3,880**
**-**
**1,623**
**26,840**
**-**
**11,552**
**3,408**
**444**
**1,871**
**-**
**25,844**
**3,130**
**84,850**|
||||||**115,354**|
Page 23
## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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
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
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_
_10,000_
_4,465_
_192,598_
_210,036_|_Income_
_£_
_-_
_42,873_
_42,873_
_15,213_
_625_
_-_
_800_
_436_
_-_
_-_
_5,025_
_24,344_
_500_
_3,376_
_-_
_3,700_
_30_
_-_
_3,218_
_11,734_
_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)_
_-_
_-_
_(25,670)_
_(16,428)_
_(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_
_-_
_2,560_
_48,840_|
||||||_81,188_|
Page 24
## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **15. Summary of funds**
## **Summary of funds - current year**
|Designated funds
General funds
Restricted funds|**Balance at 1**
**April 2021**
**£**
**17,067**
**15,281**
**48,840**
**81,188**
_Balance at_
_1 April 2020_
_£_
_17,067_
_371_
_192,598_
_210,036_|**Income**
**£**
**-**
**87,977**
**45,734**
**133,711**
_Income_
_£_
_-_
_42,873_
_69,001_
_111,874_|**Expenditure**
**£**
**-**
**(29,556)**
**(69,989)**
**(99,545)**
_Expenditure_
_£_
_-_
_(43,289)_
_(197,433)_
_(240,722)_|**Transfers**
**in/out**
**£**
**1,695**
**(61,960)**
**60,265**
**-**
_Transfers_
_in/out_
_£_
_-_
_15,326_
_(15,326)_
_-_|**Balance at**
**31 March**
**2022**
**£**
**18,762**
**11,742**
**84,850**
**115,354**|
|---|---|---|---|---|---|
||||||_Balance at_
_31 March_
_2021_
_£_
_17,067_
_15,281_
_48,840_
_81,188_|
|**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**
**2022**
**£**
Current assets
89,639
Creditors due within one year
(59,135)
**Total**
30,504|**Restricted**
**funds**
**2022**
**£**
84,850
-
84,850|**Total**
**funds**
**2022**
**£**
**174,489**
**(59,135)**
**115,354**|
|---|---|---|
Page 25
## **MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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_
_2021_
_£_
_1,716_
_190,107_
_(159,475)_
_32,348_|_Restricted_
_funds_
_2021_
_£_
_-_
_48,840_
_-_
_48,840_|_Total_
_funds_
_2021_
_£_
_1,716_
_238,947_
_(159,475)_
_81,188_|
|---|---|---|---|
## **17. Related party transactions**
During the year, the trustees gave a total of £19,528 (2021: £10,137) in donations to the charity.
Page 26