Charity number: 1188309
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
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 2023
Trustees
Adrian Brown, Water and Solar Projects Gillian Barber, Medical projects Tony Cox, 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, Chairman & Medical Projects Janice Price
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 2023
The Trustees present their annual report together with the financial statements of the charity for the year 1 April 2022 to 31 March 2023.
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 2023
Achievements and performance
a. Governance
1. Meetings: Trustees meet to consider applications from Malawi, approve new projects, to allocate funds, monitor on-going projects, review policies, address issues of strategy and ensure that MACS is compliant with Charity Commission requirements. We have met five times since our last Annual General Meeting ( November 2022). We agreed to hold alternate meetings on Zoom or in person in London. By holding meetings virtually we have halved our annual meeting costs. However, we consider it is still important to meet up every few months in person as this facilitates discussion of topics such as longer-term strategy.
2. Trustees : Trustees remained unchanged throughout the year.
3. Communications with supporters: Margaret Campbell has produced two newsletters which went out in February 2023 and the most recent one in August 2023.
4. Annual Appeal: Because of our need to attract funds in the wake of Cyclone Freddy, we did not launch any other appeals in 2023.
5. Annual Gift List: in autumn 2022 we offered only one option to supporters: pencils for schools. This was neither popular nor easy to administer and we would not go this route again.
6. 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.
7. Safeguarding: Margaret Campbell is our Safeguarding Trustee. Our Safeguarding policies and procedures are updated and adopted annually, in line with Charity Commission regulations. 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 that we support in Malawi have confirmed that they have safeguarding policies in place.
8. Remuneration of trustees’ expenses: Trustees may claim travel expenses to MACS meetings on an annual basis. We have reduced the number of in-person meetings, post Covid19. Visits to Malawi are in line with current agreed policy. The first Project Officer’s trip since 2019 took place in May 2023 and the chairman and treasurer accompanied the project officer. Details of all claims appear in the Annual financial report.
Page 3
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
Achievements and performance (continued)
b. Projects
1. Applications: During the past year a total of £106,546 was granted to new projects. Last year we reported a significant reduction in applications received. This trend continued until the 2023 Project Officer’s trip which highlighted to people in Malawi the possibility of making applications again. It is anticipated that more applications will be forthcoming.
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) 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.
(c) 2023 Project Officer’s annual trip: this trip, the first since 2019, took place in May 2023. Accompanied by our Chairman and Treasurer, the Project Officer was able to visit many project sites as well as meet new Malawians in various posts in the Dioceses of Upper Shire and Lake Malawi. They also toured sites where the devastation of Cyclone Freddy was very apparent. This trip has enabled trustees to feel more connected again to what is going on in Malawi. It has enabled some personal contacts which have helped with getting timely information from parties, such as reports from schools for bursary students.
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.
During the past year, the renovation of Staff housing at Malindi Hospital was completed.
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 29 students at Malosa Secondary School, St Michael’s Girls’ Secondary School, Bishop Mtekateka Secondary School and 20 at various Community Day Secondary Schools (CDSS). Following a review in early 2022 of the Bursary system, we were concerned by a significant increase in fees in Malawi. This forced us to re-consider our projections. However, a generous donation of £25,000 towards bursaries has meant we are confident of being able to honour our 4 year commitment to bursary students and, in the autumn of 2023 we will be able to review the position once the new fees structure has been announced and we may well be able to extend the bursary scheme.
5. Parish and Diocesan Support
Cylone Freddy devastated many areas, particularly in Southern Malawi in the early part of 2023. In response to the need, MACS allocated £2000 of General Funds to help with reconstruction. This gift, through the generosity of donors, grew to £13,513 which has been channelled through The Anglican Council of Malawi (ACM) to bring relief and hope for affected communities.
Page 4
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
Achievements and performance (continued)
6. Community and Training
Chilema Ecumenical Training Centre continues to train students from rural areas. Student numbers have reduced significantly post-Covid but MACS has supported the training of 10 students on each of the two courses run in 2023. Janice Price is the link trustee for Chilema and keeps us informed on progress. The temporary library that was renovated was visited by the Project Officer and as it is sufficiently large, MACS agreed to fund the purchase of shelving, desks and chairs and some books. There are no current plans to build a bespoke library.
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. We have been especially grateful for two anonymous donations: one gives real support to the bursary scheme while the other, for capital projects, has meant we have embarked on a round of building double classroom blocks with offices for primary schools and for one Community Day Secondary School.
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 2023 should be £3,651. The actual unrestricted reserves amounted to £26,519.
c. Financial summary
The income for the year was £87,782 as compared to the previous year of £133,711. The expenditure for the year was £124,782, as compared to £99,545. As a consequence, the deficit was £37,000, compared to a surplus of £34,166 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 £110,175 (2022: £83,169) were approved during the year. At the end of the year £30,802 (2022: £42,523) 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.
Page 5
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
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.
Page 6
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
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: 20 November 2023
Page 7
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2023
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 2023.
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 2023
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:
-
accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
-
the accounts do not accord with those records; or
-
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: 28 November 2023
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 2023
| 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 2023 £ 48,128 1,211 49,339 28,319 28,319 21,020 (25,005) (3,985) 30,504 (3,985) 26,519 |
Restricted funds 2023 £ 38,443 - 38,443 96,463 96,463 (58,020) 25,005 (33,015) 84,850 (33,015) 51,835 |
Total funds 2023 £ 86,571 1,211 87,782 124,782 124,782 (37,000) - (37,000) 115,354 (37,000) 78,354 |
Total funds 2022 £ 133,571 140 133,711 |
|---|---|---|---|---|
| 99,545 99,545 |
||||
| 34,166 - 34,166 |
||||
| 81,188 34,166 115,354 |
Page 10
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2023
| Note Fixed assets 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 |
13,901 112,203 126,104 (47,750) |
2023 £ 78,354 78,354 78,354 51,835 26,519 78,354 |
6,516 167,973 174,489 (59,135) |
2022 £ 115,354 |
|---|---|---|---|---|
| 115,354 | ||||
| 115,354 | ||||
| 84,850 30,504 |
||||
| 115,354 |
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Martin Herrick Chairman Date: 20 November 2023
Page 11
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
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.
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 2019), 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 in October 2019 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 2023
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 2023
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 2023
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 2023
3. Income from donations and legacies
| Unrestricted funds 2023 Restricted funds 2023 £ £ Donations 48,128 38,443 Unrestricted funds 2022 Restricted funds 2022 £ £ Donations 87,837 45,734 Investment income Unrestricted funds 2023 £ Investment income - local cash 1,147 Investment income - foreign cash 64 Total 2023 1,211 Unrestricted funds 2022 £ Investment income - local cash 30 Investment income - foreign cash 110 Total 2022 140 |
Total funds 2023 £ 86,571 |
|---|---|
| Total funds 2022 £ 133,571 |
|
| Total funds 2023 £ 1,147 64 1,211 |
|
| Total funds 2022 £ 30 110 140 |
4. Investment income
Page 16
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
5. Analysis of expenditure on charitable activities
Summary by fund type
| Unrestricted funds 2023 £ Grant making activities 28,319 Unrestricted funds 2022 £ Grant making activities 29,556 |
Restricted funds 2023 £ 96,463 Restricted funds 2022 £ 69,989 |
Total 2023 £ 124,782 |
|---|---|---|
| Total 2022 £ 99,545 |
6. Analysis of expenditure by activities
| Grant making activities Grant making activities |
Activities undertaken directly 2023 £ 13,953 Activities undertaken directly 2022 £ 16,052 |
Grant funding of activities 2023 £ 110,175 Grant funding of activities 2022 £ 83,169 |
Support costs 2023 £ 654 Support costs 2022 £ 324 |
Total funds 2023 £ 124,782 |
|---|---|---|---|---|
| Total funds 2022 £ 99,545 |
Page 17
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
6. Analysis of expenditure by activities (continued)
Analysis of direct costs
| Malawian representative retainer Malawian representative travelling Malawian representative telephone Room hire Bank charges Paypal charges Printing and stationery Total 2023 Depreciation Malawian representative retainer Malawian representative travelling Malawian representative telephone Bank charges Paypal charges Printing and stationary Sundry expenses Total 2022 Analysis of support costs |
Grant making activities 2023 £ 6,882 4,526 812 98 346 58 1,231 13,953 Grant making activities 2022 £ 1,716 6,903 5,092 800 396 33 1,058 54 16,052 |
Total funds 2023 £ 6,882 4,526 812 98 346 58 1,231 13,953 |
|---|---|---|
| Total funds 2022 £ 1,716 6,903 5,092 800 396 33 1,058 54 16,052 |
||
| Grant | ||
|---|---|---|
| making | Total | |
| activities | funds | |
| 2023 | 2023 | |
| £ | £ | |
| Governance costs | 654 | 654 |
Page 18
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
6. Analysis of expenditure by activities (continued) Analysis of support costs (continued)
| Governance costs 7. Analysis of grants Grant making activities Grants making activities |
Grant making activities 2022 £ 324 Grants to Institutions 2023 £ 110,175 Grants to Institutions 2022 £ 83,169 |
Total funds 2022 £ 324 |
|---|---|---|
| Total funds 2023 £ 110,175 |
||
| Total funds 2022 £ 83,169 |
Page 19
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
7. Analysis of grants (continued)
The charity has made the following material grants to institutions during the year:
| Name of institution Medical Health Education Bursaries Donald Arden Bursary Fund Donald Arden Memorial Fund Gifts menu Vocational courses for women St Lukes Hospital Chilema Equipment Solar Power Sponsor a bed Mosquito nets St Martin's staff houses Magomero St Anne's Hospital Other grants to institutions |
2023 £ 11,379 18,000 13,949 10,083 - 338 4,705 - - 36,509 1,500 - - - - 13,712 110,175 110,175 |
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 |
8. Analysis of expenditure by percentage
| Grants Malawi projects supervision costs UK expenses |
2023 £ 110,175 12,366 2,241 124,782 |
2023 % 88.29 9.91 1.80 100.00 |
2022 2022 £ % 83,169 83.55 15,091 15.16 1,285 1.29 99,545 100.00 |
|---|---|---|---|
9. Independent examiner's remuneration
The independent examiner's remuneration amounts to an independent examiner fee of £654 ( 2022 - £612 ).
Page 20
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
10. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .
During the year ended 31 March 2023, expenses totalling £ NIL were reimbursed or paid directly to Trustees (2022 - £NIL ).
| 11. Tangible fixed assets Cost or valuation At 1 April 2022 At 31 March 2023 Depreciation At 1 April 2022 At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 |
Motor vehicles £ 17,067 |
|---|---|
| 17,067 | |
| 17,067 | |
| 17,067 | |
| - | |
| - |
Page 21
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
12. Debtors
| Due within one year Prepayments and accrued income Tax recoverable |
2023 £ 2,002 11,899 13,901 |
2022 £ 2,267 4,249 |
|---|---|---|
| 6,516 |
13. Creditors: Amounts falling due within one year
| Accruals and deferred income Grants accrued - institutional |
2023 £ 16,948 30,802 47,750 |
2022 £ 16,612 42,523 |
|---|---|---|
| 59,135 |
Page 22
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
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 Sponsor-a-bed Bursaries and school fees Donald Arden Bursary Fund Donald Arden Memorial Fund Gifts list Vocational courses for women St Michael's solar power Cyclone Other restricted fund projects Total of funds |
Balance at 1 April 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 |
Income £ - 49,339 49,339 9,242 1,588 450 12,157 3,875 - - - 2,208 7,053 1,870 38,443 87,782 |
Expenditure £ - (28,319) (28,319) (11,379) - (1,500) (31,949) (10,083) - (338) (4,705) (36,509) - - (96,463) (124,782) |
Transfers in/out £ 3,411 (28,416) (25,005) 3,296 - - 9,249 - - (106) 2,834 8,457 2,500 (1,225) 25,005 - |
Balance at 31 March 2023 £ 22,173 |
|---|---|---|---|---|---|
| 4,346 | |||||
| 26,519 | |||||
| 7,417 5,468 573 16,297 5,344 3,408 - - - 9,553 3,775 51,835 |
|||||
| 78,354 |
Page 23
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
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 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 |
15. Summary of funds
Page 24
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
15. Summary of funds (continued)
Summary of funds - current year
| Designated funds General funds Restricted funds |
Balance at 1 April 2022 £ 18,762 11,742 84,850 115,354 Balance at 1 April 2021 £ 17,067 15,281 48,840 81,188 |
Income £ - 49,339 38,443 87,782 Income £ - 87,977 45,734 133,711 |
Expenditure £ - (28,319) (96,463) (124,782) Expenditure £ - (29,556) (69,989) (99,545) |
Transfers in/out £ 3,411 (28,416) 25,005 - Transfers in/out £ 1,695 (61,960) 60,265 - |
Balance at 31 March 2023 £ 22,173 4,346 51,835 78,354 |
|---|---|---|---|---|---|
| Balance at 31 March 2022 £ 18,762 11,742 84,850 115,354 |
|||||
| 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 2023 £ Current assets 74,269 Creditors due within one year (47,750) Total 26,519 |
Restricted funds 2023 £ 51,835 - 51,835 |
Total funds 2023 £ 126,104 (47,750) 78,354 |
|---|---|---|
Page 25
MALAWI ASSOCIATION FOR CHRISTIAN SUPPORT CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
16. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior year
| Current assets Creditors due within one year Total |
Unrestricted funds 2022 £ 89,639 (59,135) 30,504 |
Restricted funds 2022 £ 84,850 - 84,850 |
Total funds 2022 £ 174,489 (59,135) 115,354 |
|---|---|---|---|
17. Related party transactions
During the year, the trustees gave a total of £8,748 (2022: £19,528) in donations to the charity.
Page 26