REGISTERED COMPANY NUMBER: 12743725 (England and Wales) REGISTERED CHARITY NUMBER: 1191947
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
FOR
SJC87 INITIATIVE UK
Raffingers LLP Chartered Certified Accountants 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD
SJC87 INITIATIVE UK
CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 December 2022
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 3 |
| Statement of Financial Activities | 4 | ||
| Balance Sheet | 5 | to | 6 |
| Notes to the Financial Statements | 7 | to | 11 |
SJC87 INITIATIVE UK (REGISTERED NUMBER: 12743725)
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 statements of the charity for 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 charity's main aims are to promote and provide for the advancement of education, Tamil culture, physical and mental health of children and the relief of poverty through the provision of grants to suitable institutions and individuals mainly in Sri Lanka and also in UK.
Principal activities and review
To meet its objectives the charity continued to make maintenance grants to qualifying institutions and individuals.
Public benefit
The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit, and 'The Advancement of culture and education for the Public Benefit' in particular, when reviewing the aims and objectives of the charity and in planning the charity's future activities.The aims of the charity for the public benefit are detailed in the 'Objectives and Activities' section of this report.
Grant Making Policy
The charity makes grants to other charities that fulfil its objects. Before further projects are considered the charity will invite applications through advertising in appropriate media. Detailed selection criteria will be agreed in advance. Other grant requests are received and dealt with when funds are available.
FINANCIAL REVIEW
Financial position
During the year the charity's had net expenditure of £10,763 ( net income 2021 - £5,347) taking the total funds carried forward to £9,496 (2021 - £20,259).
Reserves policy
The trustees have established the level of reserves (that is those funds that are freely available) that the charity ought to have. Reserves are needed to bridge the funding gaps between spending on activities and receiving resources through voluntary income. The trustees consider that the ideal level of reserves as at 31 December 2021 would be three months of resources expended. However the trust is operated as a grant giving charity, and the trustees' policy is to only seek to distribute or commit the income arising in each financial year. The charity had reserves of £9,496 at the year end.
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SJC87 INITIATIVE UK (REGISTERED NUMBER: 12743725)
REPORT OF THE TRUSTEES
for the year ended 31 December 2022
FINANCIAL REVIEW
Going concern
The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. They have made this assessment in respect of a period of one year from the date of approval of these financial statements.
The trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Trust to continue as a going concern. They are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.
Covid 19
The Covid 19 pandemic has developed rapidly, with significant social and economic impact. As the primary source of income for the charity is not from fundraising from the general public, and its objectives are met by providing grants to other charities, at this stage the impact on our ability to continue with our charitable activities is not significant.
Fundraising
The charity has a good reputation within the local community and has a large pool of regular donors who wish to have a part in the charitable activities of the charity. Existing donors often recommend and encourage other philanthropists to pledge their support to the success of the charity. As such, the trustees do not engage professional fundraisers nor do they undertake public collections or cold calls.
FUTURE PLANS
The charity plans to continue giving grants to its sister charity in Sri Lanka, St, John's Batch of 1987 trust and other charities with similar objectives in line with the trustees' vision of making a tangible impact to the activities of the charity's beneficiaries.
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.
Recruitment and appointment of new trustees
There must be at least three trustees at any one time. New trustees must be appointed by a resolution of the Trustees passed at a special meeting.
New trustees are selected for their skill, knowledge and experience needed for the effective administration of the charity. New trustees undergo a formal vetting process before appointment.
Organisational structure
The board of trustees administers the charity. The trustees must hold at least two ordinary meetings each year. One such meeting must involve the physical presence of those trustees in attendance.
The trustees are vigilant to the potential conflict of interest which could arise should they benefit financially from the charity or where their duties as directors of the companies from which donations are received would compete with their duties to the charity.
The trustees consider any potential conflict of interest issues before they take decisions and mitigate these by involving independent third parties where necessary. In addition an independent trustee has been appointed and protocols are in place which require a conflicted trustee to withdraw from any discussions where there may be a potential conflict.
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SJC87 INITIATIVE UK (REGISTERED NUMBER: 12743725)
REPORT OF THE TRUSTEES
for the year ended 31 December 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT
Induction and training of new trustees
Any new trustee will be fully briefed on the history of the trust, and its objectives and plans, as well as the management and operational processes. Trustees can retire when they wish as they do not serve under a fixed term of tenure.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
12743725 (England and Wales)
Registered Charity number
1191947
Registered office
19-20 Bourne Court Southend Road Woodford Green
Trustees
Mr T Mohanavel Mr S Satyendira Mr S Thurairatnam
Company Secretary
Mr S Thurairatnam
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on 30 September 2023 and signed on its behalf by:
Mr S Thurairatnam - Trustee
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SJC87 INITIATIVE UK
STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022
| 2022 | 2021 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| fund | funds | ||
| Notes | £ | £ | |
| INCOME AND ENDOWMENTS FROM | |||
| Donations and legacies | 2 | 26,640 | 30,940 |
| EXPENDITURE ON | |||
| Charitable activities | 3 | ||
| Advancement of education, relief of poverty and | |||
| advancement of cultural activities | 37,403 | 25,593 | |
| NET INCOME/(EXPENDITURE) | (10,763) | 5,347 | |
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | 20,259 | 14,912 | |
| TOTAL FUNDS CARRIED FORWARD | 9,496 | 20,259 |
The notes form part of these financial statements
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SJC87 INITIATIVE UK (REGISTERED NUMBER: 12743725)
BALANCE SHEET
31 December 2022
| 2022 Unrestricted fund Notes £ CURRENT ASSETS Cash at bank 9,496 NET CURRENT ASSETS 9,496 TOTAL ASSETS LESS CURRENT LIABILITIES 9,496 NET ASSETS 9,496 FUNDS 8 Unrestricted funds 9,496 TOTAL FUNDS 9,496 |
2021 Total funds £ 20,259 |
|---|---|
| 20,259 | |
| 20,259 | |
| 20,259 | |
| 20,259 | |
| 20,259 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
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continued...
SJC87 INITIATIVE UK (REGISTERED NUMBER: 12743725)
BALANCE SHEET - continued 31 December 2022
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 30 September 2023 and were signed on its behalf by:
Mr S Thurairatnam - Trustee
Mr T Mohanavel - Trustee
The notes form part of these financial statements
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SJC87 INITIATIVE 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.
Grants payable
Grants payable are included in the period when any relevant conditions are met by the receiving entity. Payment of later instalments of a grant usually requires satisfactory progress reports from the project.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure
Charitable activities
The cost of charitable activities comprises those incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
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.
Cash at bank and in hand
Cash at bank and cash 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.
Creditors and provisions
continued...
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SJC87 INITIATIVE UK
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022
1. ACCOUNTING POLICIES - continued
Cash at bank and in hand
Creditors 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 settlement can be estimated reliably.
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 except for bank loans which are subsequently measured at the carrying value plus accrued interest less repayments. The financing charge to expenditure is at a constant rate calculated using the effective interest method
2. DONATIONS AND LEGACIES
| 2. | DONATIONS AND LEGACIES | ||||
|---|---|---|---|---|---|
| 2022 | 2021 | ||||
| £ | £ | ||||
| Donations | 26,640 | 30,940 | |||
| 3. | CHARITABLE ACTIVITIES COSTS | ||||
| Grant | |||||
| funding of | |||||
| activities | Support | ||||
| Direct | (see note | costs (see | |||
| Costs | 4) | note 5) | Totals | ||
| £ | £ | £ | £ | ||
| Advancement of education, relief of poverty | |||||
| and advancement of cultural activities | 13 | 37,307 | 83 | 37,403 | |
| 4. | GRANTS PAYABLE | ||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Advancement of education, relief of poverty and advancement of cultural | activities | 37,307 | 25,583 | ||
| The total grants paid to institutions during the year was as follows: | |||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| St.John's Batch of 1987 Trust | 37,307 | 25,583 |
continued...
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SJC87 INITIATIVE UK
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022
5. SUPPORT COSTS
| SUPPORT COSTS | |
|---|---|
| Finance | |
| £ | |
| Advancement of education, relief of poverty and | |
| advancement of cultural activities | 83 |
6. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.
7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted | |
|---|---|
| fund | |
| £ | |
| INCOME AND ENDOWMENTS FROM | |
| Donations and legacies | 30,940 |
| EXPENDITURE ON | |
| Charitable activities | |
| Advancement of education, relief of poverty and | |
| advancement of cultural activities | 25,593 |
| NET INCOME | 5,347 |
| RECONCILIATION OF FUNDS | |
| Total funds brought forward | 14,912 |
| TOTAL FUNDS CARRIED FORWARD | 20,259 |
continued...
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SJC87 INITIATIVE UK
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022
8. MOVEMENT IN FUNDS
| MOVEMENT IN FUNDS | |||
|---|---|---|---|
| Net | |||
| movement | At | ||
| At 1.1.22 | in funds | 31.12.22 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 20,259 | (10,763) | 9,496 |
| TOTAL FUNDS | 20,259 | (10,763) | 9,496 |
| Net movement in funds, included in the above are as follows: | |||
| Incoming | Resources | Movement | |
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 26,640 | (37,403) | (10,763) |
| TOTAL FUNDS | 26,640 | (37,403) | (10,763) |
Comparatives for movement in funds
| Net | |||
|---|---|---|---|
| movement | At | ||
| At 1.1.21 | in funds | 31.12.21 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 14,912 | 5,347 | 20,259 |
| TOTAL FUNDS | 14,912 | 5,347 | 20,259 |
| Comparative net movement in funds, included in the above are as follows: | |||
| Incoming | Resources | Movement | |
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 30,940 | (25,593) | 5,347 |
| TOTAL FUNDS | 30,940 | (25,593) | 5,347 |
continued...
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SJC87 INITIATIVE UK
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022
8. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined position is as follows:
| Net | |||
|---|---|---|---|
| movement | At | ||
| At 1.1.21 | in funds | 31.12.22 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 14,912 | (5,416) | 9,496 |
| TOTAL FUNDS | 14,912 | (5,416) | 9,496 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 57,580 | (62,996) | (5,416) |
| TOTAL FUNDS | 57,580 | (62,996) | (5,416) |
9. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 December 2022.
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