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2021-12-31-accounts

Charity registration number 293961

FAITH IN ACTION

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FAITH IN ACTION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mr F J Rumball Mrs S J Jeffree Mrs J R Ainge Mr B N Carter

Charity number 293961 Independent examiner Baldwin Scofield Accountancy LLP 3 Newhouse Business Centre Old Crawley Road Faygate Horsham West Sussex UK RH12 4RU

FAITH IN ACTION

CONTENTS

Page
Trustees report
Independent examiner's report 1
Statement of financial activities 2
Balance sheet 3
Notes to the financial statements 4 - 11

-y li Working in Partnership with the Church in Africa Faith iii Ar,tion, 14 Gabrie.1 Road, Maidp.nbower, Crawle}', West Sussex RIIIO 7LG Telp.phone... 111293 886.i96 Regi8te.rp.d C.liarit? No: 293961 Wp.bsite: www.faithinaction.uk.com Email: sall}'@faithiiiac.tion.uk.r,om TRUSTEES, REPORT AND FINANCIAL STATEMENTS R THE YEAR ENDED ECEMBER 20 mini at the registered office in Crawley. Regular com- munication is maintained with the other trus- tees who are kept up-to-date with all significant events and whose advice and agreement is sought with regard to an appropriate response to such events. Charity Name: Faith in Action Charity Registration Number: 293961 Legal Information: Faith in Action was estab- lished in 1986. It is unincorporated and gov- erned by a trust deed. Address of Registered Office: 14 Gabriel Road Maidenbower, Crawley, West Sussex RHIO 7LG Appointment and Training of Trustees.. New trustees are appointed by current trustees. Three of the current trustees have all vislted East Africa. Charity's Trustees: Mr Frank James Rumball Mrs Sally lane Jeffree Mrs Jennifer Ruth Ainge Mr Brian Norman Carter Decision Making: Most new projects are pro- posed in response to current circumstances and needs in Africa but they are presented to and agreed by trustees before implementation. Sometitnes a pilot project will be set up to test the viability of any proposal before a project is accepted for further funding. Trustees meet two to four times during the year but stay in regular telephone and email contact between meetings. During this year five of the six trustees, meeting were done on Zoom. New projects are also dis- cussed with church leaders in Africa and will only be implemented if they consider them to be appropriate for their needs and current circum- stances. We have also been able to meet with church leaders in Malawi on Zoom as we were not able to visit Malawi this year. Our experience has shown the importance of working as a united team with church leaders and project co-ordinators in Africa and only funding projects which everyone considers both appropriate and beneficial. This is one reason why we have sought to build strong relation- rnan na emen Constitution and Organisational Structure: At the end of the year there were four trustees. Martin leffree died on 27th july 2019 and Brian Carter was appointed a fourth trustee at a Zoom trustees, meeting held on 13th May 2020. One trustee is responsible for the administration. One signatory looks after the accounts and Brian Carter has co-ordinated our container consign- ments which will finish at the end of this year. There are no employees and no payments are made to any trustee, associate or volunteer for work performed. All the projects in Africa are set up and overseen by project co-ordinators working for the church ill Africa with whom we communicate regularly. The administration of the charity is carried out

ships with church leaders and project co- ordinators in Malawi and to maintain good com- munication with them. any material departures disclosed and ex- plained in the financial statements,. prepare the financial statements on the going concern basis unless it is inappropri- ate to presume that the charity will contin- ue in operation. The trustees are responsible for keeping proper accounting records which disclose with reason- able accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 2011 and 2018. They have general responsibility for taking such steps as are rea- sonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities. Trustees of Faith in Action should also ensure that.. Information, costs and photographs for our cur- rent projects are presented in leaflet form and these leaflets are sent to supporters when there is a request for information. We also have a web- site which provides information about our pro- jects. As a result, many donations are given for specific projects although sorne funds are given more generally for projects in Malawi. Decisions about the designation of funds given generally for Malawi are made by one or more ofthe trus- tees after discussion with church leaders and project co-ordinators in Malawi. Identified Risks: We have taken out public and product liability insurance. We have also drawn our insurers, attention to one 20ft shipping con- tainer which is used for storage purposes. This shipping container was given away the follow- ing year. We have taken out employees, insur- ance for the benefit of the trustees and volun- teers who sUPPOrt our work. There have been no changes which required any alterations to our risk assessments files for all the activities of the charity. The charity does not invest any finances in the stock market or own or rent any brick buildings. Our relief consignments contain mainly second- hand items and thus have little comtnercial val- ue. All projects are funded by sending the fi- nances to the appropriate country by interna- tional bank transfer. all projects are within the permitted ob- jects as laid down in the governing instru- ment; all funds are used according to the donors, expressed designation,. all current projects are working well and are appropriate and beneficial to commu- nities in Africa,. all funds sent to Africa are spent according to the agreed designations,. good communication is maintained with church leaders and project co-ordinators in Africa- reports are received on the distribution and setting up of all projects. Statement of Trustees. Responsibilities: The law applicable to charities in England and Wales requires the trustees to prepare financial state- ments for each financial period which give a true and fair view ofthe incoming resources and the application of the resources of the charity during the year, and of its state of affairs at the end of the year. In preparing those financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently,. make judgements and estimates that are reasonable and prudent- state whether applicable accounting standards and statements of recommend- ed practice have been followed, subject to Ob"ectives and Activities Objects of the Charity: The objects of the chari- ty as given on the governing instrument are as follows: The relief of persons who are in conditions of poverty need hardship or distress and the relief of the aged and of the sick in Af- rica. The advancement of the Christian religion by the proclamation of the gospel of Jesus Christ and the building up of His body the church by whatever legally charitable means the Trustees in their absolute dis- cretion think fit.

Location and Identified Needs: Our work con- tinues to be focused mainly, but not exclusively, on an area in southern Malawi called the Lower Shire. This area is located south of Blantyre. It is separated from the rest of the country by a 1,000 metre escarpment. This area has faced both insufficient and excessive rain over the last fifteen years and this has resulted in poor food security. The people living in the Lower Shire are mainly subsistence farmers who have few alternative sources of income when their crops fail. There are a large number of orphans in this region and many orphaned children are cared for by their grandparents. Few farmers would be able to af- ford a Bible and rlone are available for sale in the Lower Shire. 7 This has been the last year in which we will send consignments of good quality - mainly second-hand relief aid, consisting primarily of clothing items. This aspect of our work will stop towards the end of this year as these items are less urgently needed now. Charity's Strategies for achieving Stated Ob- jectives: Development projects.. Most donations for pro- jects are given by churches or individuals who are in some way associated with our packing groups. Funds are sent to Malawi by international bank transfer. Projert co-ordinators in Malawi set up the projects and send reports, receipts. and pho- tographs back to the UK. Where possible materi- als are purchased in Malawi so that spare parts are available locally. Where it is appropriate, training is given on maintaining and/or using the equipment and materials received. We produce a regular newssheet which gives information about all the finances which have been transferred to Africa and how these funds have been distributed during the preceding pe- riod. We aim to include photographs where these are available. We work with the Faith in Action Church (an unrelated organisationj which has about 600 congregations in Malawi. We therefore have ex- cellent access into rural communities through these church congregations. This same church also has congregations in Mozambique, Zambia and Zimbabwe and we have occasionally given funding to some of these countries. With these facts in mind, our aims are as follows: Charity's Public Benefit Aims {Social and In- vestment Policies).. l Our prirnary aim is to set up sustainable pro- jects which will help rural communities to provide for themselves on a long-term basis and thus to reduce their need for emergency aid when their crops fail. 2 To provide access to clean drinking water. 3 To increase food security through irrigation schemes and also by providing more drought and flood resistant crops. 4 To support families who foster orphaned children and to enable communities to set up orphan day-care centres for children who lack younger foster parents. 5 To provide Christian resources for church congregations and to distribute Bibles and Bible studies in prisons. 6 We have started a ministry into one of the rubbish dumps on the edge of Blantyre, providing meals for the families who live there, and funding loans for the setting up of businesses. Details of Significant Activities: Our current and potential projects are as follows.. I We have been sending relief consignments to Malawi containing mainly second-hand clothing. 2 We provide funds for Bibles and other Chris- tian resources in local languages and a ma- chine called a Proclaimer which has a chip holding the text of the whole Bible in a varie- of languages, including Chichewa. This Proclaimer can be operated using solar- power or by hand-winding. We are also providing some Bible study booklets. We are providing Bibles and Bible study booklets in prisons. 3 We provide loans for irrigation projects. Each system enables two crops to be grown each year instead of one which has often failed. The loan is offered with the agree- ment of farmers to give 50 % of their crops to be sold and the funds thus raised to be used for community projects in the local area. This scheme has been very successful, although

the strength of the wind has increased in re- cent years resulting in increased mainte- nance costs. We have therefore started to construct solar-powered systems instead of wind-pump systems. These are more expen- sive but irrigate 200 acres of land instead of 50. Achievement nd Performan Achievements: Our income for the current year is higher than the previous year. The funds have been expended in accordance with the donors. expressed wishes and in line with the charity's objectives, although some of these specifically designated funds are still awaiting to be sent. We include below details of the relief consign- ments which were sent to Malawi and also the projects which were funded during the year. IPlease not that funds have been rounded up or down to the nearest pound sterling.] 4 We provide funding for the construction of wells. 5 We provide funds for the purchase of goats for families who foster orphaned children. 6 We provide funding for a variety of seeds, cuttings and suckers for crops which mature faster and/or require less rain than the local maize upon which they currently depend. We also provide fertilizer which has pro- duced significantly higher yields for farmers. 7 We provide funds through the church in Ma- lawl for interest-free loans which enable families with skills to set up small family businesses. 8 We provide funds for bicycle ambulances which can take sick people to hospital from rural areas over rough terrain. 9 We provide funds for mosquito nets. These funds have been invested in a long-term high-interest account in Malawi which pays interest every 30 days. The interest is used to purchase mosquito nets for families in or- der to protect them from malaria. Each fami- ly is provided with three nets. 10 We have started a ministry in a rubbish dump on the outskirts of Blantyre. We have provided rneals for the 350 people who live in this dump scavenging for rubbish to sell. We also provide loans for setting up busi- nesses which will enable families to leave the dump and to provide themselves with an in- come and accommodation. Distributiottol ￿e50{ Clothi￿8 I CONTAINER CONSIGNMENTS: We sent our last clothing consignment to Malawi this year. The cost of shipping this consignment of 240 boxes to Malawi was £2,280, together with a further £341.88 for collecting these boxes from Salima in Malawi. 11 Main Objectives for the Period: During the period under review we have provided funds for many, but not all, of the current projects as listed above as these projects appear to be working well and to benefit communities. We continually review the effectivelless of our projects and prioritise as appropriate. During the year, we have also provided re- sources for protecting people from the Covid 19 virus. Solar Panel In Lundu Village 2 SOLAR IRRIGATION SYSTEMS.. During the year, we sent a total of £19.083 to set up a third solar irrigation project in Lundu Vil- lage. and also to provide training for our sec- ond irrigation project which was constructed

in Chinsamba Village as we omitted this when we set it up. As these solar irrigation systems irrigate 200 acres instead of just 50 acres. as irrigated by the wind-pump sys- tems, we provide for these solar systems in two stages.. These irrigation projects are funded as a loan. Each system enables two crops to be grown each year instead of one which has often failed. The loan is offered with the agreement of farmers to give 50 % of their crops to be sold and the funds thus raised to be used for community projects in the local area. The loan is repaid with the income produced frotn crops sold. We now provide solar irrigation systems instead of the wind-pump systems which we provided previously. These irriga- tion schemes have been very successful. members and 12 pastors by ISIS. This sum also included funds to bring one la- dy who had been shot in the leg and had had her leg amputated without anesthetic back to Malawi for medical treatment and to provide her with a prosthetic leg. Distributioii olPraise St,dies in Maknnae Prison 4 TRANSLATING AND PRINTING BIBLE STUDIES: During the year we sent a total of £9,981 for printing 8,000 Bible studies. 1,000 were distributed in Makhande Prison, the rest were distributed to members of the Faith in Action church and also to members of other churche5 who had asked for them. The sum of £261 was included in this sum for these studies to be translated into Portu- guese and £214 for them to be translated in- to Lomwe. Wesley 8ii'in8 cl Moianil)iC.aii Cl -1 I cljicl Pail ¢)1 Slio)(JS 3 RELIEF SUPPLIES FOR MOZAMBIQUE: Dur- ing the year, we sent a total of £10,407 to provide food, clothing, shelters and blankets for two groups totalling 780 people who fled their homes in north-eastern Mozambique following the murder of 50 congregation "strihlltin8th'd Ig I￿￿ateri￿S aPrison 5 COVID 19 RESOURCES.. During the year, we sent a total of £5,426 for Covid 19 resources. This included 7,500 bars of soap, 3,500 masks, 200 buckets with taps for washing hands, and I thermometer gun. This sum also included testing kits for five prisons so that isolated prisoners with Covid TheL41dy-ho has lost hex Le8 usin6a Tricyclethat ha&￿ell lent to Her

could be tested before placing them back in- to the main wards of the prison. Each kit in- cluded 20 packs of 50 testing kits, 300 bars of soap. 200 masks, 2 x 500 mls bottles of sanitizer. 3 boxes of 100 gloves and funds for a clinician to teach prison staff how to use the kits. included funds for Wesley to travel to Zimba- bwe to chec1< of a business that we had set up there the previous year. Henrti Chin8ola lYiAktlvisitinAoneRestaurant 8 PRISON AND RUBBISH DUMP MEALS.. Dur- ing the year we send £3,582 to provide 2.400 meals in Makande Prison and 370 meals in the rubbish dump on the outskirts of Blan- tye. I'holi)8YapI)s.. Well Cons(gLicled i un￿rJaMedV.1ldStr Mthambique 6 WEtI&. During the year we sent a £3,652.44 for the construction of one well in Mozam- bique for one of the groups who fled for ref- uge to north western Mozambique. It was constructed just across the eastern border with Malawi in an un-narned village. This sum included an extra £522 for the var- ious extra costs involved in constructing this well in Mozambique using Malawi contrac- tors, and this would include border costs as well as further transport. Di.%ITibiTti()n nl C.hri%lma% Meal 9 3 SECOND-HAND MOTORIKES.. During the year we sent a total £3,471 for three second- hand motorbikes. This sum included funds for insurance and certificates of road worthi- ness for the first year for three of these mo- C)Me¢l ih,. T,, , r..I,.,. 7 3 BUSINESSES IN THE RUBBISH DUMP.. During the year we sent a total of £4,072 for setting up two electrical businesses and one restaurant for three groups of five people from the rubbish dump. Each electrical business cost £1,043 and the restaurant cost £1,672. The total amount also The Iwoimotorbikes providalor Ike￿LaIt7bieai1 Pastors

torbikes and an initial supply of fuel and a project to provide funds to purchase fuel for two of the motorbikes. These second two motorbikes were purchased to help provide transport for two pastors in Mozambique. that Amayi Chikoti has cooked, and sharing her miraculous testimony about how God en- abled her to have an operation to retnove a cancer growth, thus saving her life. Distiibution ol BiblestoFIACkUYthM@m￿rs Amayi Chikoti {centre) 13 MEDICAL COSTS.. During the year we sent £650 for Rebecca Msamange to receive some medical treatment. The funds were used to provide transport, accommodation, meals, consultation, a MRI or CT scan 10 BIBLES= During the year we sent a total of £3,394 for the purchase of 453 Bibles which were distributed to the Faith in Action church congregations 11 GOATS: During the year we sent a £3,245 for the purchase of 105 goats which were given to 35 foster families in 8 villages. These goats are given to foster families who have taken in orphaned children, and the in- come produced from selling kids born to these goats gives financial assistance for the care of these extra children. 14 LAPTOPS FOR ZIMBABWE: On 17th March, we sent £440 to purchase a laptop and a router for church leaders in Zimbabwe. The router is rechargeable and therefore enables access to the internet when there are elec- tricity cuts, which are common. This equip- ment will enable leaders in Malawi to have Zoom discussions with leaders in Zimbabwe and it will also help Wesley to support those who are running the new trading centre in Zimbabwe. We have also provided these resources for church leaders in Mozambique and plan to provide them for Zatnbia as funds allow. 15 COLLECTING BOXES FROM SALIMA: Dur- ing the year, we sent £342 for collecting our tsdistributd to£amilies livin6 iii Mlera Villa6e 12 AMAYI CHIKOTI HOSPITAL MINISTRY: During the year we sent a total of £2.167 for Amayi Chikoti's ministry into hospitals. These funds are used for food, transport and accommodation. Pastor Chikoti and his wife are visiting differ- ent hospitals, providing patients with a meal .4 Bicliclo iliiiL Idiico iii TlioiijeP"illaAe

consignment of clothing from Salima. 16 BICYCLE AMBULANCE: During the year we provided £304 for the purchase of one bicy- cle ambulance which has been located in Thonje Village. 17 HIGH INTEREST ACCOUNT FOR BIBLES AND MOSQUITO NETS.. During the year we provided a total of £675 to be paid into two high interest accounts held in Malawi, the interest from which is used to purchase mos- quito nets and Bibles. We regularly send small amounts in order to round up our fund transfers to Malawi. The current total in the account for Bibles is £566. The current total in the high-interest account for mosquito nets is £10,544. was a huge success. Firstly, I would like to thankyou and Faith in Action UKfor showing such love to the people of Mozambique at such a time of need as this. Everyone there was just so happy and thankfulfor the supplies. It was 50 fulfilling to see these faces of joy and this gives one total joy. The Mozambican Pastors and their people who are hosting these refu- gees have demonstrated love and it was so great to see the oneness. The pastors and the group send their love and gratitude to you all" 4 TRANSLATING AND PRINTING BIBLE STUDIES: Wesley's report.. "May I take this opportunity to thank you on behalf of the Blantyre team for the provision of the Praise Studies which were so gladly received by our Pentecostal friends. They send their gratitude toyou allforyour love. 5 COVID 19 RESOURCES: Weslels report on the distribution of these resources in one of the prisons.. "The prison distribution went very well. We were overwhelmed by the recep- tion we received. The Officers in Charge wel- comed us very warmly, t7nd they st7id that to receive organisations who come to support them in such hard times like this due to the pandemEC ES a very welcomegesture and every assistance they receive towards the Covid 19 pandemic goes a long wt7y. We were t7sked to send greetings and a big thank you to our friends in the UKfor their love and support" Wesley also wrote that pastors were very thankful for these resources as they are greatly needed at this time. They asked Wes- ley to thank us for this act of love. Everyone was thankful for the soap, masks and buckets as this indeed is very helpful in titnes wE]en Covid still remains a big threat to society.. 6 WELI&. This well in Mozambique has been constructed and will be especially helpful in providing water for the large number of ref- ugees who have fled to this area. 7 3 BUSINESSES IN THE RUBBISH DUMP.. Wesley's report on the setting up of the two electrical projects. I have edited it to clarify some of his comments. Iwouldlike to thank you on behalf of the entire team herefor this provision. Once agaEn it continues to put a smile on those who ht7d no hope ond felt ne- glected ond left out This is bringing n7uch IJ M03WiitONets￿lll3 aistr&llta in NkoliknVilla8e 18 PROIECT SETTING UP COSTS.. During the year we provided a total of £2,894 for the costs involved in transporting the items pro- vided to their destination. Perforniance I CONTAINER CONSIGNMENTS.. Dan Nkhand- we's report.. "The consignmentarrived in Ma- lawl around 5th November and some days lat- er we went to get the boxes from Salima. We found all of them in good condition. We hove distributed the clothes to the needy. Thank you very much and God blessyou richly." 2 SOLAR IRRIGATION SYSTEMS: Dan Nkhandwe has reported that the construc- tion of this third solar irrigation project went very well. The government in Malawi are saying that these solar irrigation systems are the best way to bring about food security. 3 RELIEF SUPPLIES FOR MOZAMBIQUE: weSle￿S report: "The trip to Mozambique

needed confidence and support to many. The shops are doing well. The teams in the busi- nesses t75ked us to Pt7ss on their gratitude for this. Once again this is [7 wonderful revelation nd we ore very thankful to Godfor directing you to set up these projects for the rubbish dump community." Wesley also wrote the restaurant had made a good start and he was very pleased with the progress thus far. 8 PRISON AND RUBBISH DUMP MEALS.. Wes- ley, report on the rubbish dump meal.. would like to thankyoufor providing the rub- bish dump meal. This is always such a blessing and goes a long way to bringing joy and smiles to their faces. The choirman, on behalf of everyone, asked me to thankyou for honor- ing their request to provide them with a ChristTnas meal." that is so encouraging to all those she is meet- ing along their travels. They were overjoyed with the boost offinances, ond she shed tears nd asked us to thankyou for this as this was a prayer answered on her parL" 14 LAPTOPS FOR ZIMBABWE.. These laptops have enabled church leaders in Zimbabwe to have Zoom meetings with church leaders in Malawi. We, in the UK, have also had Zoom conversations with church leaders in Malawi, and this has been especially valuable when we discuss future fund transfers. 16 BICYCLE AMBULANCE.. Bicycle ambulances are not only used to take sick people to hos- pital from villages where bicycles would be the only available means of transport, but they are also used to collect dead bodies from hospital and to take them back to their village for burial. The local pastor looks after each ambulance and it is available for the whole community to use. Anyone who borrows it, signs in a book when it is taken and returned. 9 BIBLES.. Wesley's report. The Biblescontin- ue to be a blessing to the people and the area pastors thanked usfor bringing them, and al- sofor the Praise Studies which t7re a source of great value to the churches." 10 GOATS: Dan Nkhandwe reported that this project is doing very well and foster families are very grateful for the provision of these goats which will help them to receive some income for supporting their family. 16 HIGH INTEREST ACCOUNT FOR BIBLES AND MOSQUITO NETS.. The capital in the account for Bibles is still relatively low and so leaders in Malawi are waiting before using the income for the purchase of Bibles. During the year the income from the mosqui- to net account was used to purchase 675 nets which were given to 225 foster families in 6 villages. Each family if given 3 nets. 12 AMAYI CHIKOTI HOSPITAL MINISTRY: Wesley's report: 'Amai Chikoti isjustsuch an amazing woman, and it seems that the Lord has given her and her husbt7nd such strength

FAITH IN ACTION

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FAITH IN ACTION

I report to the Trustees on my examination of the financial statements of Faith in Action (the charity) for the year ended 31 December 2021.

Responsibilities and basis of report

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

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by 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 now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with 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:

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 financial statements to be reached.

Baldwin Scofield Accountancy LLP

3 Newhouse Business Centre Old Crawley Road Faygate Horsham West Sussex RH12 4RU UK

Dated: 20 September 2022

FAITH IN ACTION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
21,026
58,737
Investments
4
1
-
Total income
21,027
58,737
Expenditure on:
Charitable activities
5
2,167
76,818
Net incoming/(outgoing)
resources before transfers
18,860
(18,081)
Gross transfers
between funds
(18,081)
18,081
Net income/(expenditure)
for the year/
Net movement in funds
779
-
Fund balances at 1 January
2021
8,926
-
Fund balances at 31
December 2021
9,705
-		 Total Unrestricted
Restricted
Total
funds
funds
2021
2020
2020
2020
£
£
£
£
79,763
10,417
34,350
44,767
1
22
-
22
79,764
10,439
34,350
44,789
78,985
954
68,560
69,514
779
9,485
(34,210)
(24,725)
-
(34,210)
34,210
-
779
(24,725)
-
(24,725)
8,926
33,651
-
33,651
9,705
8,926
-
8,926

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

FAITH IN ACTION

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Current assets
Stocks
9
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within
one year
11
Net current assets
Income funds
Unrestricted funds		 2021
£
-
1,550
8,755
10,305
(600)		 £
9,705
9,705
9,705		 2020
£
242
1,071
12,709
14,022
(5,096)		 £
8,926
8,926
8,926

The financial statements were approved by the Trustees on 20 September 2022

Mrs S J Jeffree Mrs J R Ainge Trustee Trustee

FAITH IN ACTION

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

1 Accounting policies

Charity information

Faith in Action is a charitable trust registered with the Charity Commission in England and Wales.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements 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 Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

FAITH IN ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.5 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 are allocated on the portion of the asset’s use.

1.6 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

FAITH IN ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
21,026
56,414
Donated goods and
services
-
2,323
21,026
58,737		 TotalUnrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
77,440
10,417
33,980
2,323
-
370
79,763
10,417
34,350		 Total
2020
£
44,397
370
44,767

FAITH IN ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

4 Investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 1 22

FAITH IN ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

5 Charitable activities

Charitable
Expenditure
Malawi
Charitable
Expenditure
Orphans
Charitable
Expenditure
Packing
2021
2021
2021
£
£
£
Transport, Packing Materials and Nappies
-
-
2,696
Goats
-
3,245
-
Irrigation systems
19,083
-
-
Relief Aid for Mozambican refugees
10,740
-
-
Translating and printing bible studies
9,981
-
-
COVID 19 resources
5,427
-
-
Wells
3,652
-
-
3 Businesses from Rubbish dump
3,739
-
-
Meals in prison and rubbish dump
3,582
-
-
Second hand motorbikes
3,471
-
-
Bibles
3,394
-
-
Project setting up costs
2,894
-
-
Amayi Chikoti Hospital fund
2,167
-
-
Medical treatment
650
-
-
Other expenditures
2,097
-
-
70,877
3,245
2,696
Share of governance costs (see note 6)
2,167
-
-
73,044
3,245
2,696
Analysis by fund
Unrestricted funds
2,167
-
-		 Total
2021
Charitable
Expenditure
Malawi
Charitable
Expenditure
Orphans
Charitable
Expenditure
Packing
2020
2020
2020
£
£
£
£
2,696
-
-
520
3,245
-
2,735
-
19,083
11,863
-
-
10,740
-
-
-
9,981
20,920
-
-
5,427
8,466
-
-
3,652
5,621
-
-
3,739
4,379
-
-
3,582
3,625
-
-
3,471
2,811
-
-
3,394
1,567
-
-
2,894
1,848
-
-
2,167
737
-
-
650
1,100
-
-
2,097
2,368
-
-
76,818
65,305
2,735
520
2,167
954
-
-
78,985
66,259
2,735
520
2,167
954
-
-		 Total
2020
£
520
2,735
11,863
-
20,920
8,466
5,621
4,379
3,625
2,811
1,567
1,848
737
1,100
2,368
68,560
954
69,514
954

FAITH IN ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

5
Charitable activities
Restricted funds		 70,877
73,044		 3,245
3,245		 2,696
2,696		 76,818
78,985		 65,305
66,259		 2,735
2,735		 (Continued)
520
68,560
520
69,514

FAITH IN ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

6
Support costs
Support
costs
Governance
costs
£
£
Independent
examination fee
-
600
Legal and professional
-
622
Printing & stationary
-
143
Insurance
-
802
-
2,167
Analysed between
Charitable activities
-
2,167		 2021
Support
costs
Governance
costs
£
£
£
600
-
-
622
-
-
143
-
200
802
-
754
2,167
-
954
2,167
-
954		 2020
£
-
-
200
754
954
954

Governance costs includes payments to the independent examiners of £600 (2020 - £Nil) for independent examination fees.

7 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

8 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
2021 2020
Number Number
Total - -
There were no employees whose annual remuneration was more than £60,000.
9 Stocks
2021 2020
£ £
Finished goods and goods for resale - 242

FAITH IN ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

10
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 2021
£
1,383
167
1,550		 2020
£
914
157
1,071

11 Creditors: amounts falling due within one year

Other creditors
Accruals and deferred income		 2021
£
-
600
600		 2020
£
5,096
-
5,096

12 Related party transactions

There were no disclosable related party transactions during the year (2020 none) .