**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|
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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{ Clothi8
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 IateriS
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
unrJaMedV.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
IkeLaIt7bieai1 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@mrs
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
M03WiitONetslll3 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:
weSleS 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:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the 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
- 1 -
## **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.
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## **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**
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## **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.
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## **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.
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## **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|**Total**Unrestricted
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|
|---|---|---|
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## **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|
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## **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|
|---|---|---|
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## **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|
|---|---|---|---|---|---|---|---|
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## **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|
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## **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) .
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