Annual Report and Financial Statements for the Year Ended 31 December 2022
Faith In Action
Charity registration number: 293961
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
FAITH IN ACTION
CONTENTS
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 12 |
| Independent Examiner's Report | 13 |
| Statement of Financial Activities | 14 |
| Balance Sheet | 15 |
| Notes to the Financial Statements | 16 to 22 |
FAITH IN ACTION
REFERENCE AND ADMINISTRATIVE DETAILS
Trustees
Mr Frank Rumball Mr Brian Carter Mrs Sally Jeffree Mrs Jennifer Ainge
Charity Registration 293961 Number
Principal Office 14 Gabriel Road Maidenbower Crawley West Sussex RH10 7LG Independent Examiner G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF Bankers Royal Bank of Scotland Drummond House 1 Redheughs Avenue Edinburgh EH12 9JN
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FAITH IN ACTION
TRUSTEES' REPORT
The trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2022.
Structure, governance and management
Nature of governing document
Faith in Action was established in 1986. It is unincorporated and governed by a trust deed.
Recruitment and appointment of trustees
New trustees are appointed by current trustees. Three of the current trustees have all visited East Africa.
Organisational structure
At the end of the year there were four trustees. One trustee is responsible for the administration. One signatory looks after the accounts and Brian Carter has co-ordinated our container consignments which finished at the end of 2021. 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 in Africa with whom we communicate regularly.
The administration of the charity is carried out at the registered office in Crawley. Regular communication is maintained with the other trustees 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.
Decision making
Most new projects are proposed in response to current circumstances and needs in Africa, but they are presented to and agreed by trustees before implementation. Sometimes 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. New projects are also discussed with church leaders in Africa and will only be implemented if they consider them to be appropriate for their needs and current circumstances.
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 relationships with church leaders and project co-ordinators in Malawi and to maintain good communication with them.
Information, costs and photographs for our current projects are presented in leaflet form and these leaflets are sent to supporters when there is a request for information. We also have a website which provides information about our projects. As a result, many donations are given for specific projects although some 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 of the trustees after discussion with church leaders and project co-ordinators in Malawi.
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FAITH IN ACTION
TRUSTEES' REPORT (CONTINUED)
Risk management
The trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
We have taken out public and product liability insurance. We have also drawn our insurers’ attention to one 20ft shipping container which is used for storage purposes. This shipping container was given away the following year. We have taken out employees’ insurance for the benefit of the trustees and volunteers 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 commercial value. All projects are funded by sending the finances to the appropriate country by international bank transfer.
Objectives and activities
Objects and aims
The objects of the charity as given on the governing instrument are as follows: a. 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 Africa.
b. 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 discretion think fit.
Location and identified needs
Our work continues 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 twenty years and this has resulted in poor food security. During the year this southern section of the country faced two devastating cyclones at the beginning of the year which resulted in widespread destruction and loss of homes, possessions and crops.
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 afford a Bible and none are available for sale in the Lower Shire.
We work with the Faith in Action Church (an unrelated organisation) which has about 600 congregations in Malawi. We therefore have excellent 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.
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FAITH IN ACTION
TRUSTEES' REPORT (CONTINUED)
Public benefit
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Charity’s public benefit aims (Social and investment policies)
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Our primary aim is to set up sustainable projects 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.
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To provide access to clean drinking water.
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To increase food security through irrigation schemes and by providing more drought and flood resistant crops.
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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.
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To provide Christian resources for church congregations and to distribute Bibles and Bible studies in prisons.
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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.
Charity’s strategies for achieving stated objectives
Development projects: Most donations for projects 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. Project co-ordinators in Malawi set up the projects and send reports, receipts, and photographs back to the UK. Where possible materials 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 period. We aim to include photographs where these are available.
Details of significant activities
Our current and potential projects are as follows:
- We provide funds for Bibles and other Christian resources in local languages and a machine called a Proclaimer which has a chip holding the text of the whole Bible in a variety 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.
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FAITH IN ACTION
TRUSTEES' REPORT (CONTINUED)
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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 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. This scheme has been very successful, although the strength of the wind has increased in recent years resulting in increased maintenance costs. We have therefore started to construct solar-powered systems instead of wind-pump systems. These are more expensive but irrigate 200 acres of land instead of 50. All three of our current solar irrigation schemes were destroyed by the two cyclones, and we replaced one on higher ground towards the end of the year.
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We provide funding for the construction of wells.
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We provide funds for the purchase of goats for families who foster orphaned children.
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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 produced significantly higher yields for farmers.
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We provide funds through the church in Malawi for interest-free loans which enable families with skills to set up small family businesses.
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We provide funds for bicycle ambulances which can take sick people to hospital from rural areas over rough terrain.
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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 order to protect them from malaria. Each family is provided with three nets. We have also started a second high-interest account, the interest from which will be used for purchasing Bibles.
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We have started a ministry in a rubbish dump on the outskirts of Blantyre. We have provided meals for the 350 people who live in this dump scavenging for rubbish to sell. We also provide loans for setting up businesses which will enable families to leave the dump and to provide themselves with an income and accommodation.
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 effectiveness of our projects and prioritise as appropriate. During the year, we spent a considerable proportion of our funds for cyclone relief, and we will need to re-evaluate what projects to support in future given that most of them did not survive the very destructive nature of the two cyclones. [There was a further cyclone during March the following year.] We need therefore to adapt current projects so that they are less vulnerable to flood damage [e.g. constructing irrigation schemes on higher ground], or fund new projects which will not be so affected by adverse weather conditions.
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FAITH IN ACTION
TRUSTEES' REPORT (CONTINUED)
Achievements and performance Achievements
During the year from 1st January to 31st December 2022, we made a total of six fund transfers to Malawi for a grand total of £61,100. These funds transfers including funding for the following purchases and projects. (This grand total also included funds for distribution and bank charges which we have not included in this report):
1. Relief Items following Cyclone Ana and Cyclone Gombe : Following Cyclone Ana which caused very significant damage in Madagascar, Mozambique and Malawi from 21st to 24th January and Cyclone Gombe which followed a similar course from 8th to 13th February, we have sent four fund transfers during the year totalling £27,211 which have focused on providing relief items for communities who have lost virtually everything. They also faced a serious outbreak of cholera. In these four fund transfers, we have provided the following relief items:
a. Tents : In our February and March fund transfers, we sent a total of £9,742 for the purchase of three 15.28 metre x 7.62 metre tents. Each tent has accommodated 240 people. We have therefore provided accommodation for about 720 people. Once the tents are no longer required, they will be kept for further disasters in the future, and in the meantime will be hired out for weddings and funerals to provide income for the church.
b. Seeds: In our February, March, May and August fund transfers, we sent a total of £9,448 for the purchase of 485 x 10kg packets of Masika maize seed to replace lost crops.
c. Blankets: In our February, March, May and August fund transfers, we sent at total of £2,827 for the purchase of 350 blankets. (May to early August is their cooler season.)
d. Food : In our February, March and August fund transfers, we sent at total of £2,450 for the purchase of 200 x 50kg bags of maize flour.
e. Buckets : In our February, March, May and August fund transfers, we sent a total of £701 for the purchase of 210 buckets.
f. Water and Cholera Treatment: In our February, March and May fund transfers, we sent at total of £673 for the purchase of 2,000 x 250gm packets of water treatment to protect communities from cholera.
g. Kitchen Utensils and Plastic Plates etc : In our February, March and May fund transfers, we sent at total of £609 for the purchase of 160 sets of 10 cups, 10 spoons and 2 jugs.
2. Solar Irrigation System : On 3rd October, we sent £14,122 for one replacement solar irrigation system in Chinsamba Village (The original system had been damaged during the two cyclones). The system cost £15,203, but a loan repayment of £1,081 was used to make up the full sum required. These solar-powered irrigation systems are more expensive than the wind-pump systems which we provided previously, but they irrigate 200 acres of land instead of just 50 acres.
3.Bible Studies : During the year we sent a total of £7,400 for printing 6,500 Bible Studies and a total of £2,341 for the purchase of 280 Bibles.
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FAITH IN ACTION
TRUSTEES' REPORT (CONTINUED)
4. Goats for Foster Families : During the year, we sent a total of £2,728 for the purchase of 72 goats which were given to 24 foster families each of whom have adopted one orphan in 6 different villages. Each family receives one male and two female goats.
5.Health Care Courses : On 3rd October, we sent £900 so that two ladies could participate in a short three-month health care course at a college in Blantyre that teaches basic nursing skills to those from rural areas. The course teaches cardiopulmonary resuscitation (CPR); blood pressure signs, symptoms and detection; diabetes management; the detection of cervical cancer in women; basic midwifery and counselling techniques.
6.Bicycle Ambulances: Following the extensive destruction caused by cyclones Anna and Gombe, communities in the Lower Shire also faced a cholera outbreak which was caused by the flood water spreading infection from pit latrines. In response, on 12th May, we sent £807 for the purchase of two bicycle ambulances which can take cholera patients to hospital without risking further spread of contamination through people carrying those who are infected. These two bicycle ambulances have been purchased and have been located in Phazi and Magalasi villages.
7.Welding Business for a Prisoner : On 8th February, we sent a total of £691 to provide an ex-prisoner—who had become a Christian while he was in prison after reading one of our Bible studies —with a welding business, 6 months rental for accommodation and some household items. We provided this support because after this prisoner was released on 23rd December, he returned home to find that his wife’s relations had come and had taken his wife along with his three children and all his household belongings.
8.Rubbish Dump Meals : On 23rd December, we sent a total of £567 to provide 400 meals for the community living in the rubbish dump on the outskirts of Blantyre. Each meal would include chicken, rice and vegetables. This would be a luxury for them as they were often reduced to eating mouldy bread found in the rubbish. Unfortunately, the funds did not arrive in time for a Christmas meal but was served shortly after Christmas.
9. High Interest Accounts for Bibles and Mosquito Nets : We currently have two high-interest accounts in Malawi, the high interest from which is used to purchase mosquito nets and Bibles. The current total in the mosquito net account is £10,544.
During the year, we sent a total of £203.93 to be invested in our High Interest Account in Malawi for Bibles. We send small amounts with each fund transfer in order to round them up to a simple figure. The total in that account is now £795. As this figure is still low, they have not yet drawn out any interest for the purchase of Bibles.
10. Setting Up Costs and Bank Charges : During the year we provided a total of £3,366 for the costs involved in transporting the items provided to their destination, £180 for bank charges in the UK, and £91 for bank charges in Malawi.
Performance
1. Relief Items following Cyclone Ana and Cyclone Gombe : These relief items were distributed as follows:
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The relief items funded in February were distributed in the Fatima, Chambuluka, Osiyana and Makhanga areas.
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The relief items funded in March were distributed in the Thimu area.
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FAITH IN ACTION
TRUSTEES' REPORT (CONTINUED)
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The relief items funded in May were distributed in the Ngabu area.
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The relief items funded in August were distributed in the area surrounding Magalasi Village.
All these distributions went well, and Wesley Msamange reported: The pastors there were thankful and asked them to thank Faith in Action UK and all those who assisted and prayed for them.
Tents : Wesley reported: The tents are working out very well. They have helped greatly with the problem of lack of accommodation. The total numbers sleeping in each tent is around 240/ 250 . We hoped to accommodate around 200 people in each tent, but since there are so many people in need of accommodation everyone agreed to sleep closer in order to accommodate more. So, the tents have been a very important help.
Pastors were also very thankful for the tents which would hugely assist with the accommodation problem they were facing due to houses lost.
2. Solar Irrigation System : As the previous solar irrigation system in this village had been destroyed during Cyclone Ana and Cyclone Gombe earlier this year, farmers who had benefitted from the original irrigation system in this village had collected enough funds to purchase some land which is much higher, and which should therefore be unlikely to flood in the future. During March the following year, Cyclone Freddy caused considerable destruction in southern Malawi, but this replacement solar system was not damaged.
Church leaders in Malawi have reported that this replacement system has been completed and the land has been prepared. Farmers are now ready to plant, and once again the community is happy and appreciative for the provision of this irrigation.
Because these solar irrigation systems are considerably more expensive than the wind-pump systems which we used previously, and irrigate 200 acres instead of just 50 acres, we set up each solar irrigation project in two stages: The first for the system itself and the second for seed, fertilizer, sacks, transport etc. We therefore plan to provide funds for the second stage in our next fund transfer.
3. Bible Studies : All the Bible and Bible studies which were provided earlier in the year were distributed together with other relief items following the two cyclones.
Following the provision of 1,500 Bible studies and 50 Bibles during October, we received the following report from Wesley Msamange: “ Once again, I would like to say thank you for making it possible for us to distribute these Christian resources. The pastors were very happy and excited to receive the spiritual food. They asked us to pass on their gratitude to you and the UK team. Overseer Harrison explained the positive impact the Bible Studies continue to have on church and how the Bibles will assist in the preaching of the gospel.”
4 . Goats for Foster Families: The 72 goats purchased during the year were given to 24 foster families each of whom have adopted one orphan in Chapomoko, Phazi, Chindoko, Chimbamila, Dumba and Ntolongo villages.
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FAITH IN ACTION
TRUSTEES' REPORT (CONTINUED)
This provision of goats has been well-received by local people. Goats thrive well in the Lower Shire and need little veterinary care. Each female goat should produce two kids twice a year. If all these kids are sold, this sale should produce an annual income of about £288. However, if families choose to keep one of their female kids each year instead of selling all of them, they can build their stock of breeding females and increase their yearly income. If they do this each year, they can receive a yearly income of about £1,584 by the tenth year. This would be a very large income for a family living in a rural location.
5 . Bicycle Ambulances: These two bicycle ambulances have been purchased and have been located in Phazi and Magalasi villages. They will enable cholera patients to be taken to hospital without risking further spread of contamination through people carrying those who are infected. Wesley Msamange wrote that families in these two villages were thankful for the support rendered to them through the provision of these two bicycle ambulances because they will go a long way in assisting the villagers with the cholera situation and also other patients who need to be taken to hospital.
6. Welding Business for a Prisoner : This prisoner is trained as a welder and so we provided funds for him to set up a welding business. We also included funds to provide him with some household utensils together with funds to pay for six-months rental for accommodation. Church leaders hope that after six months his business will enable him to provide himself with accommodation.
Wesley has reported that he was overjoyed by what God has done for him. He too was just showering us with thanks, and he said this has been a prayer answered for him.
When I asked Wesley why this prisoner had been imprisoned. This is his reply: “ There were some Asian business people who had come to his village to distribute goats to villagers. They were escorted by the police in order to handle security and villagers were asked to bring their National ID cards. He mistakenly took his wife's card and produced it without checking it. He was then accused of trying to receive twice. They thought he would also come and use his own card, hence receiving twice. He was immediately arrested.
7. High Interest Account for Mosquito Nets : During the earlier part of the year we authorised church leaders to use £897 of the interest from this account to purchase 1,000 packets of oral rehydration salts for those had cholera, and 1,250 packets of water treatment as a preventative measure.
The interest paid out of this account for the months of August to December was MK1,620,000. This sum was used to purchase 270 mosquito nets @ MK6,000 each. These were distributed to 90 families as follows: 30 families each received three nets in Nyang’a, Nkandala and Bazhu villages.
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FAITH IN ACTION
TRUSTEES' REPORT (CONTINUED)
Future Plans
Following the three cyclones that we have seen in southern Malawi during the last seven years, one in 2015 and two in 2022, We believe that we need to re-evaluate the most appropriate ways to support communities living in this area in the future. All our past projects have been working very well, giving significant benefits to communities but few can withstand these very serious disasters. There was also a fourth cyclone, Cyclone Freddy, during March the following year which further confirmed this need to re-evaluate which projects would be most appropriate given these weather pattern changes.
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One example would be to construct our solar irrigation schemes on higher ground where they should not be affected by flood water, and we have already done this with the replacement irrigation scheme in Chinsamba Village which we funded in October. We could also increase our tree planting alongside rivers which would prevent soil being washed into the rivers causing increased flooding problems as the rivers become silted up.
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A second would be to purchase more 15.28 x 7.62 metre tents as we did following the two cyclones this year. These large tents can accommodate 240 people when homes are washed away by flood water, and can also be used to provide income for the church through hiring them out for weddings and funerals when they are not needed in disaster situations.
The following suggestions were also made at a meeting in which church leaders in Malawi met with ten pastors to discuss the possible way forward. It was evident that everyone agreed that with climate and environmental change, they all needed to work towards adapting to this and to embark on ways of doing things which are more solid and responsive. Some did point out that it might not be an immediate change but with time we would find ways of doing stronger and durable projects etc.
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On the projects side, it was agreed that there is need to aim to do projects that can with stand strong winds etc. The group applauded the approach taken by the community that has bought land on higher ground for the proposed Solar project. Everyone was in support of this kind of critical thinking that would help to safe-guard projects for the benefit of communities.
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It was suggested that the same approach should be taken on future projects such as wells etc. Though the Lower Shire is mostly flat, we do have some briefly elevated points which can be used for such projects. Even the Government is discouraging people from farming in the flood prone areas and to move upwards.
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The group also proposed that we can set up a team to travel to the different areas and villages teaching the importance of building on higher ground. So that whenever someone builds their house or a church building, elevation should be a priority and to advise them on use of stronger materials.
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Another suggestion was about health and safety: the aim would be to have health officers in each village. The thought was that we could initiate a program where we send people with the passion for the short courses such as Amayi Chikoti’s daughters. These would in turn be a benefit to the whole community. It was suggested that diseases like cholera would be sensitised among the people on how to prevent such. These nursing officers would work on a preventative approach to most negative health scares.
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FAITH IN ACTION
TRUSTEES' REPORT (CONTINUED)
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Wesley Msamange suggested that we could invite some lecturers to come for a small fee and to give talks on the technical approach to disaster management and other problems that they face in the Lower Shire.
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The need for relocation was also discussed. It was agreed that although relocation is not easy and is a large process, communities in villages which are flood prone should be encouraged to consider moving upwards.
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It was agreed that everyone should work together with a focus on prevention, and avoiding excessive damage, as this would guard our projects in the long run.
Financial review
Income for the year amounted to £81,199 (2021: £79,764) and expenditure £63,546 (2021: £78,985). The surplus was added to fund rbought forward, with general funds being £27,358 at the year end.
Going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
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FAITH IN ACTION
TRUSTEES' REPORT (CONTINUED)
Statement of Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The annual report was approved by the trustees of the charity on 9 October 2023 and signed on its behalf by:
......................................... ......................................... Mrs Sally Jeffree Mrs Jennifer Ainge Trustee Trustee
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FAITH IN ACTION
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FAITH IN ACTION
I report to the trustees on my examination of the accounts of Faith In Action for the year ended 31 December 2022.
Responsibilities and basis of report
As the charity trustees of Faith In Action you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Faith In Action's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of Faith In Action as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
9 October 2023
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FAITH IN ACTION
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022
| Note Unrestricted funds £ Income and Endowments from: Donations and legacies 2 36,335 Investment income 3 29 Total income 36,364 Expenditure on: Charitable activities 4 2,281 Net income/(expenditure) 34,083 Gross transfers between funds (16,430) Net movement in funds 17,653 Reconciliation of funds Total funds brought forward 9,705 Total funds carried forward 9 27,358 |
Restricted funds £ 44,835 - 44,835 61,265 (16,430) 16,430 - - - |
Total 2022 £ 81,170 29 81,199 63,546 17,653 - 17,653 9,705 27,358 |
Total 2021 £ 79,763 1 |
|---|---|---|---|
| 79,764 78,985 |
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| 779 - |
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| 779 8,926 |
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| 9,705 |
The notes on pages 16 to 22 form an integral part of these financial statements. Page 14
FAITH IN ACTION
BALANCE SHEET AS AT 31 DECEMBER 2022
| Note Current assets Debtors 7 Cash at bank and in hand Creditors: Amounts falling due within one year 8 Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 9 |
2022 £ 900 27,058 27,958 (600) 27,358 27,358 27,358 |
2021 £ 1,550 8,755 |
|---|---|---|
| 10,305 (600) |
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| 9,705 | ||
| 9,705 | ||
| 9,705 |
The financial statements on pages 14 to 22 were approved by the trustees, and authorised for issue on 9 October 2023 and signed on their behalf by:
......................................... Mrs Sally Jeffree Trustee
......................................... Mrs Jennifer Ainge Trustee
The notes on pages 16 to 22 form an integral part of these financial statements. Page 15
FAITH IN ACTION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
Faith In Action meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Gift aid
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
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FAITH IN ACTION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.
Charitable activities
Charitable expenditure comprises those costs 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.
Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Liabilities
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Page 17
FAITH IN ACTION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
2 Income from donations and legacies
| Donations and legacies; Donations Donated goods Gift aid reclaimed 3 Investment income Interest receivable and similar income; Interest receivable on bank deposits |
Unrestricted funds General £ 35,096 - 1,239 36,335 Unrestricted funds General £ 29 |
Restricted funds £ 42,477 - 2,358 44,835 Restricted funds £ - |
Total 2022 £ 77,573 - 3,597 81,170 Total 2022 £ 29 |
Total 2021 £ 73,996 2,323 3,444 |
|---|---|---|---|---|
| 79,763 | ||||
| Total 2021 £ 1 |
Page 18
FAITH IN ACTION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
4 Expenditure on charitable activities
| Note Transport, packaging, etc. Cyclone relief Irrigation systems Translating and rinting Bible studies Goats Bibles 2 Health Care Courses Bicycle ambulances Welding business for prisoner Meals in prison and rubbish dump Relief aid for Mozambican refugees Covid 19 resources Wells 3 Businesses from rubbish dump Second-hand motorbikes Amayi Chikoti Hospital fund Medical treatment Other expenditures Project setting up costs Bank charges in Malawi Bank charges in UK Allocated support costs 5 |
Unrestricted funds General £ - - - - - - - - - - - - - - - - - - - - - 2,281 2,281 |
Restricted funds £ 27,211 14,794 7,400 2,728 2,341 900 807 691 567 204 - - - - - - - 3,366 - 91 165 - 61,265 |
Total 2022 £ 27,211 14,794 7,400 2,728 2,341 900 807 691 567 204 - - - - - - - 3,366 - 91 165 2,281 63,546 |
Total 2021 £ 2,696 - 19,083 9,981 3,245 3,394 - - - 3,582 10,740 5,427 3,652 3,739 3,471 2,167 650 1,773 2,894 114 210 2,167 |
|---|---|---|---|---|
| 78,985 |
Page 19
FAITH IN ACTION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
5 Support costs
| Note Insurance Printing and stationery Legal and professional Independent examination 4 |
Unrestricted funds General £ 1,412 269 - 600 2,281 |
Restricted funds £ - - - - - |
Total 2022 £ 1,412 269 - 600 2,281 |
Total 2021 £ 802 143 622 600 |
|---|---|---|---|---|
| 2,167 |
6 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses from the charity during the year.
7 Debtors
| Prepayments Other debtors 8 Creditors: amounts falling due within one year Accruals |
2022 £ - 900 900 2022 £ 600 |
2021 £ 167 1,383 |
|---|---|---|
| 1,550 | ||
| 2021 £ 600 |
Page 20
FAITH IN ACTION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
9 Funds
| Unrestricted funds General General Funds Restricted funds Project fund Total funds Unrestricted funds General General Funds Restricted funds Project fund Total funds |
Balance at 1 January 2022 £ 9,705 - 9,705 Balance at 1 January 2021 £ 8,926 - 8,926 |
Incoming resources £ 36,364 44,835 81,199 Incoming resources £ 21,027 58,737 79,764 |
Resources expended £ (2,281) (61,265) (63,546) Resources expended £ (2,167) (76,818) (78,985) |
Transfers £ (16,430) 16,430 - Transfers £ (18,081) 18,081 - |
Balance at 31 December 2022 £ 27,358 - |
|---|---|---|---|---|---|
| 27,358 | |||||
| Balance at 31 December 2021 £ 9,705 - |
|||||
| 9,705 |
Page 21
FAITH IN ACTION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
10 Analysis of net assets between funds
| 10 Analysis of net assets between funds | ||
|---|---|---|
| Current assets Current liabilities Total net assets Current assets Current liabilities Total net assets |
Unrestricted funds General £ 27,958 (600) 27,358 Unrestricted funds General £ 10,305 (600) 9,705 |
Total funds at 31 December 2022 £ 27,958 (600) |
| 27,358 | ||
| Total funds at 31 December 2021 £ 10,305 (600) |
||
| 9,705 |
Page 22