**REGISTERED COMPANY NUMBER: 12118933 (England and Wales) REGISTERED CHARITY NUMBER: 1191924**
## Report of the Trustees and
Audited Financial Statements for the Year Ended 31 December 2022
for
Good Neighbours UK
Good Neighbours UK
## Contents of the Financial Statements for the Year Ended 31 December 2022
|||Page||
|---|---|---|---|
|Chair's Report||1||
|Report of the Trustees|2|to|6|
|Statement of Trustees' Responsibilities||7||
|Report of the Independent Auditors|8|to|11|
|Statement of Financial Activities||12||
|Balance Sheet||13||
|Cash Flow Statement||14||
|Notes to the Cash Flow Statement||15||
|Notes to the Financial Statements|16|to|22|
|Detailed Statement of Financial Activities||23||
Good Neighbours UK
## Chair's Report for the Year Ended 31 December 2022
If we thought 2021 was demandingwith the challenge of Covid, the year of 2022 was, arguably, a notch above that. In a year that saw humanitariancrises deepen, the effects of climate change being felt across the globe with floods, drought and extreme heat, rampant inflation, energy supplies compromised and, finally War in Ukraine, everyone it seems faced challenge and upheaval in their daily lives.
Our GNUK team, which is not the largest in terms of human resources, rose to address some of those challenges through organising fundraisingevents in York to being involved on the ground in Ukraine supporting Ukranian refugees. We raised the issue of Water, Sanitation and Hygiene (WASH) , girls' education and women's rights through our online campaigning. The public were very generous in their support and through our campaigningwe have gained an incredible group of Volunteers who will provide help and inspiration as we continue to build good relationships with the residents, other organizations and institutions both in York and nationally.
Our work in Ukraine was, by far, the most demanding that we needed to urgently respond to. Working with our GN partners from South Korea, Japan, Taiwan, USA, and Switzerland we helped organise food and emergency supplies to people within Ukraine and to people fleeing the country. Establishinga base in Sucaeva in the north and Galati in the south of Romania, we partnered with UNICEF to provide psychosocial support kits for children caught up in this tragedy. To date, we have delivered 12,600 of these kits to children and, working with UK Psychotherapists, have delivered training to around 60 professionals and 40 volunteers in Romania to enable them to use techniques and apply the right kind of understandingto help children try to make sense of what is happeningand to build their psychological resilience to allow them to continue and develop as children within this highly unstable environment.
I am so proud of our UK team and of our colleagues across the world. The development of our Psychosocial Support programme has been developed over many years and it is something that can be used to help any child, and their parents, who are caught up in disasters such as earthquakes, flooding, war and famine. We do what we say and put children and their mothers at the heart of any programme that we deliver.
Our work will continue in Romania as this country's geographical proximity to Ukraine has meant that it is one of the safest countries for people who have no choice other than to leave their own home to cross the Border to reach safety. Our Good Neighbors Global Organisation,has now developed a new Field Countrybase in Romania and we shall support that team for months to come as they and all the NGO's working there, determine priorities going forward.
Closer to home, we continue to apply for funding to enable us to deliver our communityprojects around the world. Like many others in the international development world, we know that we are all chasing a smaller 'pot' of resources made available for this kind of work as Governments across the globe grapple with the issues I have outlined above. We remain determined and focused and learn from every bid that was not successful. We have shown that we are a resilient team, adapting and developing our approach against a very uncertain backdrop.
We are working closely with local organisations that provide support for Asylum seekers and Refugees in our locality and know that only by working as a team both in-house and externally, will we be able to provide solutions that can help people in such distressing circumstances. Each tiny step we take can make a difference and it is for us to continue the journey however difficult the challenge.
As I said at the end of 2021, and which I reiterate at the end of 2022, I am optimistic; we can play our part in creating a better, more compassionate world.
Cheryl Siddons Board Chair GNUK
Page 1
Good Neighbours UK
Report of the Trustees for the Year Ended 31 December 2022
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statementsof the charityfor the year ended 31 December 2022. The trustees have adopted the provisions of 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).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
The object of the charity is to prevent or relieve poverty by way of, but not limited to, providing education and sustainable development initiatives for the benefit and protection of children and their families in charitable need by fundraising and managing projects locally, nationally and internationally.
Our focus continues to be community development. We work in communities, with communities and for communities. We establish local needs through dialogue and assessment, working with local partners, local governments, and community representatives. Our goals are then to create sustainable solutions for the whole community in an inclusive way without discrimination including race, religion, gender, or disability.
Our projects are focused on delivering against the UN's Sustainable Development Goals (SDGs). These include poverty reduction; zero hunger such as food security; good health and wellbeing; quality education; gender equality; clean water and sanitation; and climate action.
Disasters and war cut across all of these areas by removing the basics of life for millions of people resulting in urgent need for food, shelter, warmth, medicine and psychological support.
Page 2
Good Neighbours UK
Report of the Trustees for the Year Ended 31 December 2022
## **OBJECTIVES AND ACTIVITIES Significant activities International**
## **Ukraine**
Good Neighbors UK in Partnership with UNICEF Romania has been providing support to Ukrainian refugees in Romania since the start of the war. We have delivered 12,969 Psychosocial first aids kits to children and families and conducted 1,716 support activities. Working locally in communities we have trained 55 individuals to support Ukrainianfamilies alongside training35 psychological first aid facilitators.
## **Kyrgyzstan**
In partnershipwith Good Neighbors Kyrgyz Republic, we have built toilet blocks in Bolot Mambetov. The goal of this programme is to improve girls' menstrualhealth and hygiene management(MHM) in four rural villages. The project was successfully completed over 14 months benefitting not only girl students but the teachers and the overall community in raising awareness and understanding the importance of menstrual health.
## **Cameroon**
Together with Good Neighbors Cameroon we have constructed two boreholes in the villages of Galwaché and Wassoua in Méhé. The project helps the communities of the Méhé region in accessing clean water and educating the community on WASH/ hygiene managementpractices. This helps in reducing water-borne diseases and reduces risks to women and girls while they are travelling to far places in search of clean water.
## **Nepal**
Working with Good Neighbors Nepal we are improving the access to learning for disabled children in the districts of Dhanusha and Mahottari. This project promotes equal access to education services by creating an infrastructure that promotes accessibility for children with disabilities (CWD). The project also deals with the stigmas and marginalisationassociated with disabilities and provides assistive tools. At the municipallevel (local Government)we are providing trainingand orientation on disability inclusion to help them provide the appropriate assistance to these children.
Also, with Good Neighbors Nepal we are developing a Water and Sanitation Health Facility Improvement Tool (WASH FIT) in the Modi Parbat District of Nepal. The project aims to improve the health of the communities through improving WASH practices at health facilities in the Gandaki Province including an upgrade to safe drinkingwater facilities, sanitation managementand training of health workers and general hygiene practice in the community.
## **UK**
## **York**
We created a Good Neighbours garden in Castlegate York. Working in partnership with several community organisations and volunteers, the garden provided a place of sanctuary, a meeting space, an event space and safe space for those in isolation coming through the pandemic. We organised coffee mornings for refugees to meet up and chat. The garden also provided an opportunity for York St John's University nursing students to enrich their skills by being part of this community.
## **Scarborough**
In partnershipwith Scarborough Friends of Refugees we are working to develop a support structure for refugees and asylum seekers in the town with emphasis on supporting refugees with settled status.
## **Public benefit**
We have referred to guidance contained in the CharityCommission'sgeneral guidance on public benefit when reviewing our aims and objectives and in planning our future activities.
Page 3
Good Neighbours UK
Report of the Trustees for the Year Ended 31 December 2022
## **ACHIEVEMENT AND PERFORMANCE**
## **Achievements and performance**
Good Neighbours UK is employing enhanced due diligence practices to deliver these projects. We have created a global safeguarding standard and mandatory safeguarding training for all employees and delivery partners globally. For every project, alongside the delivery work we generate a memorandum of understandingto outline our shared responsibilities which considers project outputs and outcomes ; safeguarding and whistleblowing; safer recruitment; risk management; code of conduct; anti-fraud and bribery practices; governance; financial control; monitoring and evaluation; donor reporting and dispute management.
## **FINANCIAL REVIEW**
## **Principal funding sources**
Good Neighbours UK principal fund comes in the form of a donation from The Good Neighbors Global Partnerships Centre (GPC). This fund is unrestricted however an annual budget forecast, detailing income and expenditure, is prepared in advance and approved by GPC. Funding has been approved for the period 1 January 2023 to 31 December 2023
## **Reserves policy**
The trustees have set a target of holding three months of operating costs in reserves for the charityas the amount required for statutory commitments to staff and suppliers should the UK Office cease operation. This amount is calculated to be £120,000 (approved by Board Nov 2021).
The current free reserves of the charity are £136,628 and are above the required reserves level.
The trustees recognise that six months would be a healthy reserve however, whilst we are in the development stage of the UK office, consider that three months reserve would be sufficient. The reserves policy will be reviewed at the quarterly board meetings and adjusted as the UK office grows.
## **Going concern**
The primary source of funding comes through donations to Good Neighbors International in Korea.
There is a long term commitment by Good Neighbors Internationalto fund Good Neighbours UK. The UK team continues to develop fundraising opportunities to ensure that there are additional funding streams for the operation and implementation of projects both locally, nationally and internationally.
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.
## **FUTURE PLANS**
The Charity plans to continue and expand, where possible, its present activities in the following year.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
## **Charity constitution**
Good Neighbours UK was incorporated is a company limited by guarantee on 24 July 2019 company number 12118933. It was registered as a charity in England and Wales on 21 October 2020 charity number 1191924.
## **Recruitment and appointment of new trustees**
Members of the board, who are Trustees for the purpose of CharityLaw, who have served during the period are set out in the Trustees Report. Trustees are appointed for a three-year term.
A retiringTrustee shall be eligible for re-election for consecutive periods not exceeding nine years from the date of his or her original appointment but thereafter a Trustee shall not be eligible for re-appointment until one year after his or her retirement.
Trustees will be properly appointed. Potential trustees will undergo a full recruitment and interview process, references will be sought and a full induction process implemented. Their appointment will be confirmed by the Board.
Page 4
Good Neighbours UK
Report of the Trustees for the Year Ended 31 December 2022
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Key management remuneration**
Key management personnel is reviewed and is in line with other charities of similar nature.
## **Risk management**
The Board of Trustees has continued to meet quarterly. Our financial position is reviewed on a monthly basis. We have carried out a robust analysis of our current financial position and have a dedicated Finance Officer to monitor all income and expenditure.
The Trustees have assessed the major risks to which the charityis exposed, in particular those related to the operations and finances of the charity and are satisfied that systems and procedures are in place to mitigate our exposure to any major risks.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Company number**
12118933 (England and Wales)
## **Registered Charity number**
1191924
## **Registered office**
Office Suite 6 20 Castlegate York North Yorkshire YO1 9RP
## **Trustees**
Mr J A O'Reilly Trustee (resigned 10.2.22) Dr H E Seong Trustee Mrs C Siddons Board Chair Mr M Foy Trustee Ms N S Kendrick Trustee Ms V A Wickenden Trustee Mr J Park (appointed 10.2.22) Mr M W Knight Deputy Chair (appointed 7.5.22) Mrs C Foster Trustee (appointed 7.5.22)
## **Auditors**
Armstrong Watson Audit Limited York House Thornfield Business Park Northallerton North Yorkshire DL6 2XQ
## **Bankers**
Barclays Bank UK PLC 1 Churchill Place London E14 5HP
## **Accountants**
Asquith & Co Accountants Limited Rowan House 7 West Bank Scarborough North Yorkshire YO12 4DX
Page 5
Good Neighbours UK
Report of the Trustees for the Year Ended 31 December 2022
## **AUDITORS**
The auditors, Armstrong Watson Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Approved by order of the board of trustees on 29 March 2023 and signed on its behalf by:
Mrs C Siddons - Trustee
Page 6
Good Neighbours UK
## Statement of Trustees' Responsibilities for the Year Ended 31 December 2022
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 year which give a true and fair view of the state of affairs of the charitable incorporated organisationand of its incomingresources and application of resources, includingits income and expenditure, for that period. In preparingthese 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 charitable incorporated organisation will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable incorporated organisation's transactions and disclose with reasonable accuracy at any time the financial position of the charitable incorporated organisation 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 Trust Deed. They are also responsible for safeguarding the assets of the charitable incorporated organisation 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 Cheryl Siddons (Board Chair).
Page 7
Report of the Independent Auditors to the Members of Good Neighbours UK
## **Opinion**
We have audited the financial statements of Good Neighbours UK (the 'charitable company') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
## In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure for the period then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individuallyor collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information.The other informationcomprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other informationand, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatementof this other information,we are required to report that fact. We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Page 8
Report of the Independent Auditors to the Members of Good Neighbours UK
## **Matters on which we are required to report by exception**
In the light of the knowledge and understandingof the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internalcontrol as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Page 9
Report of the Independent Auditors to the Members of Good Neighbours UK
## **Our responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individuallyor in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
We identify and assess the risks of material misstatementof the financial statements,whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, UK Charities Act, tax legislation and employment legislation.
- We enquired of the trustees, reviewed correspondence with the charity commission and reviewed trustee meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the trustees have in place to ensure compliance.
- We gained an understandingof the controls that the trustees have in place to prevent and detect fraud. We enquired of the trustees about any incidences of fraud that had taken place during the accounting period.
- The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: misappropriation of cash and other assets..
- We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.
- We enquired of the trustees and third-party advisors about actual and potential litigation and claims.
- We performed analytical procedures as a planningtool to identify any unusual or unexpected relationshipsthat might indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatementsin the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentionalomissions, misrepresentations,or the override of internalcontrols. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
Page 10
Report of the Independent Auditors to the Members of Good Neighbours UK
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Simon Turner (Senior Statutory Auditor) for and on behalf of Armstrong Watson Audit Limited York House Thornfield Business Park Northallerton North Yorkshire DL6 2XQ
Date: .............................................
Page 11
Good Neighbours UK
## Statement of Financial Activities for the Year Ended 31 December 2022
|Unrestricted
fund
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
270,168
**EXPENDITURE ON**
**Charitable activities**
3
Activities undertaken directly
250,777
**NET INCOME**
19,391
**RECONCILIATION OF FUNDS**
Total funds brought forward
117,237
**TOTAL FUNDS CARRIED FORWARD**
136,628|31.12.22
31.12.21
Restricted
Total
Total
fund
funds
funds
£
£
£
353,730
623,898
201,261
286,964
537,741
163,492
66,766
86,157
37,769
415
117,652
79,883
67,181
203,809
117,652|31.12.22
31.12.21
Restricted
Total
Total
fund
funds
funds
£
£
£
353,730
623,898
201,261
286,964
537,741
163,492
66,766
86,157
37,769
415
117,652
79,883
67,181
203,809
117,652|
|---|---|---|
|||163,492|
|||37,769
79,883|
|||117,652|
The notes form part of these financial statements
Page 12
Good Neighbours UK
## Balance Sheet
## 31 December 2022
|Unrestricted
fund
Notes
£
**FIXED ASSETS**
Tangible assets
9
3,481
**CURRENT ASSETS**
Debtors
10
3,074
Cash at bank
145,589
148,663
**CREDITORS**
Amounts falling due within one year
11
(15,516)
**NET CURRENT ASSETS**
133,147
**TOTAL ASSETS LESS CURRENT LIABILITIES**
136,628
**NET ASSETS**
136,628
**FUNDS**
12
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|31.12.22
31.12.21
Restricted
Total
Total
fund
funds
funds
£
£
£
-
3,481
3,452
-
3,074
1,943
90,623
236,212
124,182
90,623
239,286
126,125
(23,442)
(38,958)
(11,925)
67,181
200,328
114,200
67,181
203,809
117,652
67,181
203,809
117,652
136,628
117,237
67,181
415
203,809
117,652|
|---|---|
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 29 March 2023 and were signed on its behalf by:
Mrs C Siddons - Trustee
The notes form part of these financial statements
Page 13
Good Neighbours UK
|Cash Flow Statement||||
|---|---|---|---|
|for the Year Ended 31 December 2022||||
|||31.12.22|31.12.21|
||Notes|£|£|
|**Cash flows from operating activities**||||
|Cash generated from operations|1|112,675|42,518|
|Net cash provided by operating activities||112,675|42,518|
|**Cash flows from investing activities**||||
|Purchase of tangible fixed assets||(645)|(1,167)|
|Net cash used in investing activities||(645)|(1,167)|
|||||
|**Change in cash and cash equivalents in the**||||
|**reporting period**||112,030|41,351|
|**Cash and cash equivalents at the beginning**|**of**|||
|**the reporting period**||124,182|82,831|
|**Cash and cash equivalents at the end of the**||||
|**reporting period**||236,212|124,182|
The notes form part of these financial statements
Page 14
Good Neighbours UK
Notes to the Cash Flow Statement for the Year Ended 31 December 2022
## **1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
||31.12.22|31.12.21|
|---|---|---|
||£|£|
|**Net income for the reporting period (as per the Statement of Financial**|||
|**Activities)**|86,157|37,769|
|**Adjustments for:**|||
|Depreciation charges|616|504|
|Increase in debtors|(1,131)|(674)|
|Increase in creditors|27,033|4,919|
|**Net cash provided by operations**|112,675|42,518|
## 2.
## **ANALYSIS OF CHANGES IN NET FUNDS**
|At 1.1.22
Cash flow
At
£
£
**Net cash**
Cash at bank
124,182
112,030
124,182
112,030
**Total**
124,182
112,030|31.12.22
£
236,212|
|---|---|
||236,212|
||236,212|
The notes form part of these financial statements
Page 15
Good Neighbours UK
Notes to the Financial Statements for the Year Ended 31 December 2022
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
- Fixtures and fittings - 15% on reducing balance
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Hire purchase and leasing commitments**
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straightline basis over the period of the lease.
## **Pension costs and other post-retirement benefits**
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
continued...
Page 16
Good Neighbours UK
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
## **2. DONATIONS AND LEGACIES**
## **3.**
|**DONATIONS AND LEGACIES**||||
|---|---|---|---|
|||31.12.22|31.12.21|
|||£|£|
|Donations||3,917|1,558|
|Grants||619,981|199,703|
|||623,898|201,261|
|Grants received, included in the above, are as follows:||||
|||31.12.22|31.12.21|
|||£|£|
|Global Partnership Centre||279,875|194,565|
|The Korean Government Fellowship||-|5,138|
|UNICEF||337,106|-|
|The Green Hall Foundation||3,000|-|
|||619,981|199,703|
|**CHARITABLE ACTIVITIES COSTS**||||
|||Support||
||Direct|costs (see||
||Costs|note 4)|Totals|
||£|£|£|
|Activities undertaken directly|526,298|11,443|537,741|
## **4. SUPPORT COSTS**
Within activities undertaken by the charity are £11,443 of governance costs relating to audit, accountancy and legal and professional costs. These represent the support costs of the charity and have been classified as such based on the fact they are not part of the delivery of charitable activities.
## **5. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
||31.12.22|31.12.21|
|---|---|---|
||£|£|
|Depreciation - owned assets|616|504|
|Other operating leases|8,160|7,484|
|Auditors fee|4,800|4,800|
continued...
Page 17
Good Neighbours UK
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
## **6. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the period ended 31 December 2022.
## **Trustees' expenses**
There were trustees' expenses totalling £534.95 paid for during the period ended 31 December 2022. The expenses were reimbursing the trustees' for expenses incurred on behalf of the charity.
## **7.**
## **STAFF COSTS**
|**STAFF COSTS**|||
|---|---|---|
||31.12.22|31.12.21|
||£|£|
|Wages and salaries|189,504|111,430|
|Social security costs|12,209|5,123|
|Other pension costs|3,294|2,004|
||205,007|118,557|
|The average monthly number of employees during the year was as follows:|||
||31.12.22|31.12.21|
|Management|2|2|
|Administration|6|4|
||8|6|
Key management personnel are deemed to be H Yang and D King with total salary costs of £65,982 combined.
There were no employees with emoluments in excess of £60,000.
## **8.**
## **COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|Unrestricted
fund
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
200,720
**EXPENDITURE ON**
**Charitable activities**
Activities undertaken directly
163,266
**NET INCOME**
37,454
**RECONCILIATION OF FUNDS**
Total funds brought forward
79,783
**TOTAL FUNDS CARRIED FORWARD**
117,237|Restricted
fund
£
541
226
315
100
415|Total
funds
£
201,261|
|---|---|---|
|||163,492|
|||37,769
79,883|
|||117,652|
continued...
Page 18
Good Neighbours UK
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
## **9. TANGIBLE FIXED ASSETS**
|**COST**
At 1 January 2022
Additions
At 31 December 2022
**DEPRECIATION**
At 1 January 2022
Charge for year
At 31 December 2022
**NET BOOK VALUE**
At 31 December 2022
At 31 December 2021
**10.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Prepayments
**11.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Social security and other taxes
Pension liability
Accrued expenses
**12.**
**MOVEMENT IN FUNDS**
**Unrestricted funds**
General fund
**Restricted funds**
Restricted fund
**TOTAL FUNDS**|Fixtures
and
fittings
£
4,200
645
4,845
748
616
1,364
3,481
3,452
31.12.22
31.12.21
£
£
3,074
1,943
31.12.22
31.12.21
£
£
4,813
3,898
909
571
33,236
7,456
38,958
11,925
Net
movement
At
At 1.1.22
in funds
31.12.22
£
£
£
117,237
19,391
136,628
415
66,766
67,181
117,652
86,157
203,809|Fixtures
and
fittings
£
4,200
645
4,845
748
616
1,364
3,481
3,452
31.12.22
31.12.21
£
£
3,074
1,943
31.12.22
31.12.21
£
£
4,813
3,898
909
571
33,236
7,456
38,958
11,925
Net
movement
At
At 1.1.22
in funds
31.12.22
£
£
£
117,237
19,391
136,628
415
66,766
67,181
117,652
86,157
203,809|
|---|---|---|
|||203,809|
continued...
Page 19
Good Neighbours UK
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
## **12. MOVEMENT IN FUNDS - continued**
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
Restricted fund
**TOTAL FUNDS**
**Comparatives for movement in funds**
**Unrestricted funds**
General fund
**Restricted funds**
Restricted fund
**TOTAL FUNDS**
Comparative net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**Restricted funds**
Restricted fund
**TOTAL FUNDS**|Incoming
resources
£
270,168
353,730
623,898
At 1.1.21
£
79,783
100
79,883
Incoming
resources
£
200,720
541
201,261|Resources
Movement
expended
in funds
£
£
(250,777)
19,391
(286,964)
66,766
(537,741)
86,157
Net
movement
At
in funds
31.12.21
£
£
37,454
117,237
315
415
37,769
117,652
Resources
Movement
expended
in funds
£
£
(163,266)
37,454
(226)
315
(163,492)
37,769|Resources
Movement
expended
in funds
£
£
(250,777)
19,391
(286,964)
66,766
(537,741)
86,157
Net
movement
At
in funds
31.12.21
£
£
37,454
117,237
315
415
37,769
117,652
Resources
Movement
expended
in funds
£
£
(163,266)
37,454
(226)
315
(163,492)
37,769|
|---|---|---|---|
||||37,769|
continued...
Page 20
Good Neighbours UK
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
## **12. MOVEMENT IN FUNDS - continued**
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
Restricted fund
**TOTAL FUNDS**|At 1.1.21
£
79,783
100
79,883|Net
movement
At
in funds
31.12.22
£
£
56,845
136,628
67,081
67,181
123,926
203,809|Net
movement
At
in funds
31.12.22
£
£
56,845
136,628
67,081
67,181
123,926
203,809|
|---|---|---|---|
||||203,809|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
Restricted fund
**TOTAL FUNDS**|Incoming
resources
£
470,888
354,271
825,159|Resources
Movement
expended
in funds
£
£
(414,043)
56,845
(287,190)
67,081
(701,233)
123,926|Resources
Movement
expended
in funds
£
£
(414,043)
56,845
(287,190)
67,081
(701,233)
123,926|
|---|---|---|---|
||||123,926|
## **13. RELATED PARTY DISCLOSURES**
Good Neighbours UK has an inclusive partnershipwith Good Neighbors (Global PartnershipCentre). Duringthe period Good Neighbours UK received £279,875 (2021: £194,565) in grants from Good Neighbors (Global Partnership Centre).
## **14. RESTRICTED/UNRESTRICTED FUNDS**
During the period Good Neighbours UK received both unrestricted and restricted funds. The restricted funds received totalled £353,730, with expenditure totalling £286,964. Once the restricted funds from 2021 are taken into account there is a balance held of £67,181.
Unrestricted funds are funds that have been received which are not held for a specific charitable purpose. They can be spent as deemed fit by the trustees.
Restricted funds are funds that have been given to the charity for a particular purpose and must be spent on the specified purpose only.
continued...
Page 21
Good Neighbours UK
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
## **15. GOING CONCERN**
The Trustees' have prepared budgets and forecasts for a period of at least 12 months from the date of approval of these financial statements. These reflect known committed income and committed costs such as payroll and known delivery costs of new projects and plans. The outcome of these budgets and forecasts is that the Charity has significant cash head room. The level of which is such that any adverse impact of macro economic factors would not give rise to a significantfinancial pressure on the charity. As such sensitivities such as a 50% fall in forecast income from historic donors would still leave the charity with cash head room. On that basis the Trustees' have considered it appropriate to prepare the financial statements on a going concern basis.
Page 22
Good Neighbours UK
Detailed Statement of Financial Activities for the Year Ended 31 December 2022
|Detailed Statement of Financial Activities
for the Year Ended 31 December 2022|||
|---|---|---|
||31.12.22|31.12.21|
||£|£|
|**INCOME AND ENDOWMENTS**|||
|**Donations and legacies**|||
|Donations|3,917|1,558|
|Grants|619,981|199,703|
||623,898|201,261|
|**Total incoming resources**|623,898|201,261|
|**EXPENDITURE**|||
|**Charitable activities**|||
|Wages|189,504|111,430|
|Social security|12,209|5,123|
|Pensions|3,294|2,004|
|Other operating leases|8,160|7,484|
|Marketing and public relations|1,920|2,416|
|Networking and research|10,300|2,228|
|Proposal writers|-|3,240|
|Project costs|278,350|883|
|Insurance|480|490|
|Printing, postage and stationery|1,414|1,180|
|Subscriptions and licences|3,248|2,275|
|Advertising and website|7,990|8,550|
|Telephone and internet charges|3,281|3,162|
|Training|77|76|
|Repairs and renewals|387|-|
|Accommodation and subsistence|1,147|668|
|Travelling|3,736|525|
|Employee costs|185|2,686|
|Fixtures and fittings|616|504|
||526,298|154,924|
|**Support costs**|||
|**Governance costs**|||
|Accountancy fees|3,687|2,865|
|Legal fees|2,160|300|
|Bank charges|346|103|
|Human resource consultants|450|500|
|Audit fees|4,800|4,800|
||11,443|8,568|
|Total resources expended|537,741|163,492|
|**Net income**|86,157|37,769|
This page does not form part of the statutory financial statements
Page 23