Annual Report and Financial Statements for the Year Ended 31 December 2023 ## 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 17| |Independent Examiner's Report|18| |Statement of Financial Activities|19| |Balance Sheet|20| |Notes to the Financial Statements|21 to 26| ## **FAITH IN ACTION** ## **REFERENCE AND ADMINISTRATIVE DETAILS** **Trustees** Mr Frank Rumball (resigned 13 October 2023) Mr Brian Carter Mrs Sally Jeffree Mrs Jennifer Ainge Mr Nathaneal Edwards (appointed 5 May 2023) **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 Page 1 ## **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 2023. ## **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. During the year Frank James Rumball retired and Nathanael Luke Edwards was appointed as a trustee. One trustee is responsible for the administration. One signatory looks after the accounts. 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 about four times during the year (twice face to face and twice on Zoom) 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. Our website is currently being updated. 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. Page 2 ## **FAITH IN ACTION** ## **TRUSTEES' REPORT (CONTINUED)** Trustees of Faith in Action should also ensure that: 1. all projects are within the permitted objects as laid down in the governing instrument; 2. all funds are used according to the donors’ expressed designation; 3. all current projects are working well and are appropriate and beneficial to communities in Africa; 4. all funds sent to Africa are spent according to the agreed designations; 5. good communication is maintained with church leaders and project co-ordinators in Africa; 6. reports are received on the distribution and setting up of all projects. ## _**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 and employees’ insurance for the benefit of the trustees and volunteers who support our work. We also have management protection insurance. 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. 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 one devastating cyclone 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 many orphans in this region and some of these 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. Page 3 ## **FAITH IN ACTION** ## **TRUSTEES' REPORT (CONTINUED)** 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. ## _**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)**_ 1. 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. 2. To provide access to clean drinking water. 3. To increase food security through irrigation schemes and 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. 6. We have a ministry into prisons, providing food and Christian resources. 7. 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 the setting up of businesses so that groups can leave the dump and support themselves financially. 8. We provide emergency relief following natural disasters such as droughts and cyclones. ## _**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. We also set up a WhatsApp Broadcast during December which includes more information about our work, including videos of some of the beneficiaries of our projects. Page 4 ## **FAITH IN ACTION** ## **TRUSTEES' REPORT (CONTINUED)** ## **Details of significant activities** Our current and potential projects are as follows: 1. 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 solarpower or by hand-winding. We are also providing some Bible study booklets. We are providing Bibles and Bible study booklets in prisons. 2. 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 all our solar irrigation schemes were destroyed by the two cyclones which damaged the area the previous year. We replaced one on higher ground towards the end of that year and this is still operating well. 3. We provide funding for the construction of wells. 4. We provide funds for the purchase of goats for families who foster orphaned children. 5. 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. 6. We provide funds through the church in Malawi for interest-free loans which enable families with skills to set up small family businesses. 7. We provide funds for bicycle ambulances which can take sick people to hospital from rural areas over rough terrain. 8. 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 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. 9. We have a ministry in a rubbish dump on the outskirts of Blantyre. We have provided meals for the whole community who live in this dump scavenging for rubbish to sell. We also provide funds for setting up businesses, most of which enable a group of five people 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 following Cyclone Freddy which destroyed the area during March. We are continuing to re-evaluate what projects to support in future given that most of them did not survive the very destructive nature of recent cyclones. We need therefore to adapt current projects so that they are less Page 5 ## **FAITH IN ACTION** ## **TRUSTEES' REPORT (CONTINUED)** 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. ## **Achievements and performance** ## _**Achievements**_ During the year from 1st January to 31st December 2023, we made a total of seven fund transfers to Malawi for a grand total of £96,400. These funds transfers including funding for the following purchases and projects. **1. Municipal Rubbish Dump Ministry** : We sent two fund transfers during the year totalling £23,931.77 for the benefit of the community living in the municipal rubbish dump on the outskirts of Blantyre. In these two fund transfers, we have provided the following items: - **a Overalls, Boots and Gloves** : We sent a total of £14,244.27 for the purchase of 500 overalls, 490 pairs of boots and 500 pairs of gloves. - **b Care Packages** : We sent a total of £8,566.07 for the purchase of 12 x 150 care packages. These 150 care packages were to be distributed each month for 12 months. Each package contains: maize flour, cooking oil, 2 bars of soap, salt and soya pieces. - **c Grocery Businesses** : We sent a total of £1,121.43 for setting up two grocery businesses, each of which will enable 5 people to leave the rubbish dump and to provide themselves with accommodation, food and clothing. **2. Relief Items following Cyclone Freddy** : Following Cyclone Freddy which hit southern Malawi on 11[th] March and caused very significant damage, we have sent two fund transfers during the year totalling £13,245.16 which have focused on providing relief items for communities who have lost virtually everything. They also faced a serious outbreak of cholera. In these two fund transfers, we have provided the following relief items: - **a Tent** : We sent £3,461.54 for the purchase of a fourth 15.28 metre x 7.62 metre tent. [We had provided three similar tents last year following Cyclone Ana and Gombe and they have been used again this year.] Each tent accommodates about 240 people. We have therefore provided accommodation for about 960 people. We also provided £100 for a ground mat and £26.92 for a curtain to divide the tent for men and women. 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 Food** : We sent a total of £5,295.43 for the purchase of 350 x 50kg bags of maize flour. - **c Seeds:** We sent £1,847.83 for the purchase of 85 x 10kg packets of Masika maize seed to replace lost crops. - **c Blankets:** We sent at total of £1,388.87 for the purchase of 190 blankets. (May to early August is their cooler season.) Page 6 ## **FAITH IN ACTION** ## **TRUSTEES' REPORT (CONTINUED)** - **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 Kitchen Utensils and Plastic Plates etc** : We sent at total of £509.19 for the purchase of 150 sets of 10 cups, 10 spoons and 2 jugs. - **f Buckets** : We sent £307.69 for the purchase of 100 buckets. - **g Water and Cholera Treatment:** We sent at total of £307.69 for the purchase of 1,000 x 250gm packets of water treatment to protect communities from cholera. **3. Solar Irrigation System** : On 5[th] January, we sent £14,066.93 as a second payment for the replacement solar irrigation system in Chinsamba Village which we provided last year. (The original system had been damaged during the two cyclones that year). This payment included funds for training, 80 x 10kgs Masika maize, 80 x 10kgs Soya beans, 40 x 35kgs Ground nuts, 200 x 50kgs Fertilizer, Sacks, Stationery and Transport. 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. **4. Masika Maize Seeds** : On 14[th] November, we sent £9,789.47 for the purchase of 400 x 10kg packets of Masika maize seeds. The rainy season started at the beginning of November, and as crops were destroyed by Cyclone Freddy earlier in the year, families would not have seeds to plant. **5. Wells** : On 15[th] November, we sent £9,250 for the construction of two wells. Following the cyclone earlier this year, some communities have been encouraged by the government to move to higher ground where there will be no supply of clean drinking water. **6. Prison Ministry** : We sent two fund transfers during the year totalling £7,286.21 for the benefit of Nsanje and Neno prisons. In these two fund transfers, we provided the following items: - **a Food** : We sent a total of £4,187.65 for the purchase of 280 x 50kg bags of maize flour. - **b Bible Studies** : We sent a total of £1,767.73 for printing 2,000 Bible studies. - **c Bibles** : We sent a total of £1,330.83 for the purchase of 139 Bibles. **7. Bible Studies** : During the year we made four transfers to provide a total of £3,869.18 for printing 4,000 Bible studies which were distributed to different church congregations. **8. Bibles** : During the year we made four transfers to provide a total of £2,964.22 for the purchase of 283 Bibles which were also distributed to different church congregations. **9. Goats for Foster Families** : During the year we made four transfers to provide a total of £2,880.90 for the purchase of 78 goats which were given to 26 foster families in 7 different villages. **10. Car Repairs** : On 4[th] January, we sent £2,500 for repairing the church vehicle which had been hit and damaged by a drunken driver the previous year. Unfortunately, this Page 7 ## **FAITH IN ACTION** ## **TRUSTEES' REPORT (CONTINUED)** driver did not stop and could not be traced by the police, and so we were not able to claim on his insurance. **11. Funeral** : On 15[th] August, Pastor Lameck Msamange – who founded and led the Faith in Action church in Malawi, died. As many congregations would want to be present at his funeral and would need transport to Malemia, where he was buried, we sent £1,985.71 to support his family in providing for his funeral. **12. Hospital Ministry** : On 4[th] January, we sent £1,000 to provide support for Pastor Chikoti and his wife’s ministry into hospitals. Following our providing funds for Pastor Chikoti’s wife to have a cancerous tumour removed, they visit different hospitals, providing meals for patients and sharing the testimony of her recovery. **13. Camera** : On 4[th] January, we sent £800 for the purchase of a camera for taking photographs of our projects. **14. 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 £363.35 to be invested in our High Interest Account in Malawi for Bibles. We send small amounts with each fund transfer to raise them to a simple figure. The current total in that account is now £1,166. **15. Setting Up Costs and Bank Charges** : During the year we provided a total of £2,347.04 for the costs involved in transporting the items provided to their destination, £135 for bank charges in the UK, and £120.06 for bank charges in Malawi. ## _**Performance**_ **1. Municipal Rubbish Dump Ministry** : We include three edited reports. - **a Care Packages** : _“When we visited the rubbish dump with the care packs, it was an amazing atmosphere. Everyone was overjoyed with excitement in the camp. The chairman wept tears of joy. He asked us to thank our friends in the UK for thinking of them and responding to their needs in this way._ - **b Overalls, Boots and Gloves** : “ _We later distributed the overalls, boots and gloves. Once again, the people in the rubbish dump were overwhelmed with joy to receive these wonderful gifts. The chairman shared memories of the love Faith in Action has shown them over the years. He said this will forever be in their hearts. He said_ Page 8 ## **FAITH IN ACTION** ## **TRUSTEES' REPORT (CONTINUED)** _reaching out to them over the years has boosted their confidence and faith in God. The preaching they receive from FIA is helping many of them to be better persons and some receiving Christ. Once again, the chairman asked us, on behalf of their team, to thank our friends in the UK for the love.”_ - **c Grocery Businesses** : “ _We are very thankful for the provision for these groceries as this will indeed be a boost to the teams. Over the past two days we visited the shops to appreciate the progress. They are both fully operational and saw customers coming by. Those who were in the shops were thankful for the groceries and they said this is indeed a great step for them and they can see their lives changing positively. The chairman asked me to pass on his thanks to our friends in the UK for their support to the Rubbish dumps.”_ **2. Relief Items following Cyclone Freddy** : We include a report for each distribution. - **a First Distribution** : These items were distributed in two areas: first, the East Bank area where the villages of Buleya, Fatima, Chambuluka, Osiyana, Gundani, Masenjere and Matimati Mitondo were helped. Second, the Nkhate area where Bodza, Dwanya, Mapelera, Nantusi, Nkhate, Samsom, Tsapa, Nkuzi and Nchacha were reached. Page 9 ## **FAITH IN ACTION** ## **TRUSTEES' REPORT (CONTINUED)** _“The Pastors in these areas were very thankful for the items they received. They asked us to thank you for your support as it has really helped them. “_ **b Second Distribution** : These items were distributed in the Nsanje area. “ _The Nsanje distribution process went well. In all villages, we were welcomed warmly and with happy faces. The Pastors were grateful for this very timely and very welcome distribution. Pastor Hamuza in his vote of thanks said that despite the cyclone having come and gone, recovery at household level has been slow. The food, blankets and cups etc. will therefore help to bring restoration. He asked us to thank the UK team for the love shown. Other Pastors and members also asked us to pass on their thanks. Once again it was a blessing to be involved in such work. The fulfilment one gets from seeing the joy and happiness on the faces of the people._ **3. Solar Irrigation System** : The distribution of these items was successful, and all the farm committees were very grateful for these timely donations. **4. Masika Maize Seeds** : These packets of seeds were distributed in Chambuluka and Osiyana villages, which are overseen by Pastor Harry Khembo and Pastor Samson Chikoti. A report on this Distribution: _“The distribution of seed went well. Overseer Khembo gave a vote of thanks on behalf of the Pastors. He said that the church is very thankful as the people will now be able to plant and have hope for yield.”_ Masika maize is a variety of maize which matures in almost half the time of local maize, produces a higher yield, and requires less rain. 10kg of seed is sufficient to cultivate Page 10 ## **FAITH IN ACTION** ## **TRUSTEES' REPORT (CONTINUED)** one acre and costs MK46,500 (£24). The plant takes 75-85 days to mature and therefore compares well with local maize which takes 135 to 145 days. One acre of Masika maize should produce a yield of 3,000—4,000 kg of cobs and this compares very well with local maize which has an estimated yield of only 400-600kg. This is almost seven times more than local maize. **5. Wells** : We include an edited report of the construction of these two wells in Meki and Makwala villages. _“These wells have brought much needed clean water which will be beneficial to the communities. The chiefs of the area have appreciated this provision so much because now they have clean water to drink and use. One of the chiefs told us that water is life, and these have brought a new lease of life to the communities. They asked us to pass their thanks for the provision of the funds.”_ **6. Prison Ministry** : We include a report on the distribution of these items in the two prisons. - **a Nsanje Prison** : “ _The prison distribution was very successful, and the chaplain of the prison was all smiles and thankful for the Bibles and studies. He said these would keep the prisoners well fed spiritually. He asked that we come again in future to visit them. The Officer in Charge on his part thanked us for the maize flour as this would go a long way in feeding the prisoners. He assured us that he would personally be in touch with the head of catering to ensure that the prisoners are well fed with this maize. “_ Page 11 ## **FAITH IN ACTION** ## **TRUSTEES' REPORT (CONTINUED)** - **b Neno Prison** : _“We visited Neno prison and had a service there. After which there was a symbolic presentation of Bibles, Bible studies and maize flour. The chaplain and other prison officials were very thankful for the timely visit, and they said this was like an early Christmas gift for the prisoners. They said since the budget for food in prisons is very low, the flour would go a long way in feeding the prisoners. They also said that spiritual food was welcomed with open arms as this gives the prisoners a sense of calm and hope. They have enough time to read and meditate upon the word of the Lord. They said that they have heard from other prisons how these studies have had a positive impact.”_ **7. Bibles and Bible Studies** : We include three reports, the first following the January transfer, the second following the July transfer and the third following the November transfer. - **a January Transfer** : “ _The Bible and Bible Study distribution went well. Once again, we continue to see the impact of spiritual food in the lives of the people. The distribution was made in Kadamera Village in the Bangula area. Pastor Kambwemba was extremely delighted with the distribution, and he said this was a prayer answered as this was so much on his heart. We were warmly welcomed when we arrived, and the members were singing songs of praise with joy. After which the elders of the church thanked us and asked us to say thank you to our friends in the UK. Added to this, I have a few villages who have made requests for Bibles and Bible studies, and I have responded to these requests that we will honour them as funds are made available and asked for their patience.”_ - **b July Transfer** : “ _The spiritual food in terms of studies and Bibles continue to be so_ Page 12 ## **FAITH IN ACTION** ## **TRUSTEES' REPORT (CONTINUED)** _valuable to the spiritual growth of the church. Thank you very much for providing these. We also received a request for Bibles and studies from a group of pastors from Chikwawa area. I did assure them that we do not currently have any but would take note of them whenever we are able to provide them. “_ - **c November Transfer** : _“The distribution of Bibles and Bible studies went well. Overseer Khembo gave a vote of thanks on behalf of the Pastors. He thanked FIA UK for the Bible Studies which have gone a long way in the spiritual journey of the church. He said that the Pastors now use the studies in their sermons, and this has helped them to win souls to Christ. Pastor Golasi also asked us to consider other areas with the spiritual food when funds permit. Pastor Kazembe asked us to thank FIA UK for answering his request for spiritual food for Ntcheu. He said there are new churches that have been raised in the Nsipe and Bilila areas. The new pastors will in turn benefit so much.”_ **8 Goats for Foster Families** : These 78 goats which were given to a total of 26 foster families in Gamba, Buleya, Fatima, Konzere, Manthanga, Nsusa and Kaimfa villages. Each family receives one male and two female goats. **9. Car Repairs** : Wesley Msamange wrote: “ _I would like to report that the car has been repaired and is back on the road. On behalf of our family and the entire Faith in Action team Malawi, I have been asked to say thank you as this has really eased mobility and the work at large.”_ **10. Hospital Ministry** : Wesley wrote: “ _Pastor Chikoti and Amayi Chikoti were very_ Page 13 ## **FAITH IN ACTION** ## **TRUSTEES' REPORT (CONTINUED)** _happy and thankful for this support for their ministry, and they asked us to pass their greetings and appreciation to you and the UK team.”_ ## **11. High Interest Accounts for Bibles and Mosquito Nets** : - **a Mosquito Net Account** : The current total in the account for mosquito nets is £10,544. The interest paid from this account for the months of January to December this year was MK4,500,000 (approximately £2,677) and these funds were used to purchase 630 mosquito nets. These 360 nets were distributed as follows: 90 nets were distributed to 30 foster families in each of Nambazo, Thesi, Mlenga, Nsusa, Chambuluka, Fatima and Osiyana villages. During the 15 years from 2008 to 2023, we have purchased 12,712 mosquito nets which were distributed to 4,890 foster families in 308 different villages using the interest paid out from this high interest account. The capital of £10,544 remains intact. - **b Bible Account** : The current total in the high interest account for Bibles is £1,166. During July, they received MK87,000 (£63) in interest which they used to purchase six Bibles. They plan to purchase more Bibles with interest from this account for their Easter meetings next year, which will be held in Nsanje. These six Bibles were distributed in Tsamdoka village, which is close to Nsanje boma. They were distributed to new converts to Christ who were very thankful as this would be very helpful as they start their Christian walk. ## **Future Plans:** 1. Pastor Lameck Msamange, founder and leader of the Faith in Action church in Malawi, died on the 15[th] August 2023, and this has resulted in significant changes in the leadership of the church. We also need to re-evaluate all our projects following the destruction caused by recent cyclones. There was also another cyclone, Cyclone Freddy, during March of this year. - a. We constructed a replacement solar irrigation scheme on higher ground in Chinsamba Village during October last year, and this was not damaged during Cyclone Freddy. - b. 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. Page 14 ## **FAITH IN ACTION** ## **TRUSTEES' REPORT (CONTINUED)** 2. The following suggestions were also made at a meeting during 2022 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. - a. 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. - b. 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. - c. 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. - d. 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 to higher ground. - e. 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. 3. Further projects had been discussed but not implemented in the past, all of which would not be affected by destructive weather and so we could consider implementing them in the future: - a. **Literacy in Prisons** : It was suggested that we pay teachers to go into prisons and to teach literacy in their spare time. - b. **Legal Support of Prisoners** : It has been suggested that we hire a lawyer to work with innocent prisoners to get them released. - c. **The Law protecting Widows** : It was suggested that we send teams to travel around the villages to teach about the change in the law with regard to male relatives taking the possessions of widows. - e. **Work with Forced Marriages:** Wesley Msamange had contact with two female lawyers who would be pleased to work with young girls who had been forced to marry older men. - f. Pastor Sempro’s son, who has recently been to university in Malawi to study law, may be prepared to work with us with the second two of these potential projects. - g. The team in Malawi have worked with a Christian lawyer who would be happy to work together with us in future. Page 15 ## **FAITH IN ACTION** ## **TRUSTEES' REPORT (CONTINUED)** ## **Financial review** Income for the year amounted to £84,180 (2022: £81,199) and expenditure £99,018 (2022: £63,546). The deficit was added to funds brought forward, with general funds being £12,519 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. Page 16 ## **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: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - 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 23 August 2024 and signed on its behalf by: ......................................... ......................................... Mrs Sally Jeffree Mrs Jennifer Ainge Trustee Trustee Page 17 ## **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 2023. ## **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: 1. accounting records were not kept in respect of Faith In Action as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. 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 23 August 2024 Page 18 ## **FAITH IN ACTION** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023** |**Note**
**Unrestricted**
**funds**
**£**
**Income and Endowments from:**
Donations and legacies
2
21,967
Investment income
3
190
Total income
22,157
**Expenditure on:**
Charitable activities
4
2,484
Total expenditure
2,484
Net
income/(expenditure)
19,673
Gross transfers between
funds
(34,511)
Net movement in funds
(14,838)
**Reconciliation of funds**
Total funds brought
forward
27,357
Total funds carried
forward
9
12,519|**Restricted**
**funds**
**£**
62,023
-
62,023
96,534
96,534
(34,511)
34,511
-
-
-|**Total**
**2023**
**£**
83,990
190
84,180
99,018
99,018
(14,838)
-
(14,838)
27,357
12,519|**Total**
**2022**
**£**
81,170
29| |---|---|---|---| ||||81,199| ||||63,546| ||||63,546| ||||17,653
-| ||||17,653
9,705| ||||27,358| The notes on pages 21 to 26 form an integral part of these financial statements. Page 19 ## **FAITH IN ACTION** ## **BALANCE SHEET AS AT 31 DECEMBER 2023** |**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|**2023**
**£**
291
12,858
13,149
(630)
12,519
12,519
12,519|**2022**
**£**
900
27,058| |---|---|---| |||27,958
(600)| |||27,358| |||27,358| |||27,358| The financial statements on pages 19 to 26 were approved by the trustees, and authorised for issue on 23 August 2024 and signed on their behalf by: **----- Start of picture text -----**
.........................................
**----- End of picture text -----**
......................................... Mrs Sally Jeffree Trustee ......................................... Mrs Jennifer Ainge Trustee The notes on pages 21 to 26 form an integral part of these financial statements. Page 20 ## **FAITH IN ACTION** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** ## **1 Accounting policies** ## **Statement of compliance** The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom 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. ## **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. Page 21 ## **FAITH IN ACTION** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)** ## _**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. ## **2 Income from donations and legacies** |Donations and legacies;
Donations
Gift aid reclaimed|**Unrestricted**
**funds**
**General**
**£**
19,328
2,639
21,967|**Restricted**
**funds**
**£**
60,507
1,516
62,023|**Total**
**2023**
**£**
79,835
4,155
83,990|**Total**
**2022**
**£**
77,573
3,597| |---|---|---|---|---| |||||81,170| Page 22 ## **FAITH IN ACTION** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)** ## **3 Investment income** |**Unrestricted**
**funds**
**General**
**£**
Interest receivable and
similar income;
Interest receivable on
bank deposits
190|**Restricted**
**funds**
**£**
-|**Total**
**2023**
**£**
190|**Total**
**2022**
**£**
29| |---|---|---|---| ## **4 Expenditure on charitable activities** |**Note**
Cyclone relief
Irrigation systems
Translating and
rinting Bible studies
Goats
Bibles
2 Health Care
Courses
Bicycle ambulances
Prison ministry
Rubbish dump
ministry
Wells
Masika Maize Seeds
Other project
expenditures
Project setting up
costs
Bank charges in
Malawi
Bank charges in UK
Allocated support
costs
5|**Unrestricted**
**funds**
**General**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,484
2,484|**Restricted**
**funds**
**£**
13,245
14,067
3,869
2,881
2,964
-
-
7,286
23,932
9,250
9,789
6,649
2,347
120
135
-
96,534|**Total**
**2023**
**£**
13,245
14,067
3,869
2,881
2,964
-
-
7,286
23,932
9,250
9,789
6,649
2,347
120
135
2,484
99,018|**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| Page 23 ## **FAITH IN ACTION** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)** ## **5 Support costs** |**Note**
Insurance
Printing and
stationery
Independent
examination
Marketing/promotion
Software
4|**Unrestricted**
**funds**
**General**
**£**
1,154
-
630
508
192
2,484|**Restricted**
**funds**
**£**
-
-
-
-
-
-|**Total**
**2023**
**£**
1,154
-
630
508
192
2,484|**Total**
**2022**
**£**
1,412
269
600
-
-| |---|---|---|---|---| |||||2,281| ## **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** |**7 Debtors**||| |---|---|---| |Other debtors
**8 Creditors: amounts falling due within one year**
Accruals|**2023**
**£**
291
**2023**
**£**
630|**2022**
**£**
900| |||**2022**
**£**
600| Page 24 ## **FAITH IN ACTION** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (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**
**2023**
**£**
27,357
-
27,357
**Balance**
**at 1**
**January**
**2022**
**£**
9,705
-
9,705|**Incoming**
**resources**
**£**
22,157
62,023
84,180
**Incoming**
**resources**
**£**
36,364
44,835
81,199|**Resources**
**expended**
**£**
(2,484)
(96,534)
(99,018)
**Resources**
**expended**
**£**
(2,281)
(61,265)
(63,546)|**Transfers**
**£**
(34,511)
34,511
-
**Transfers**
**£**
(16,430)
16,430
-|**Balance**
**at 31**
**December**
**2023**
**£**
12,519
-| |---|---|---|---|---|---| ||||||12,519| ||||||**Balance**
**at 31**
**December**
**2022**
**£**
27,358
-| ||||||27,358| Page 25 ## **FAITH IN ACTION** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (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**
**£**
13,149
(630)
12,519
**Unrestricted**
**funds**
**General**
**£**
27,958
(600)
27,358|**Total funds**
**at 31**
**December**
**2023**
**£**
13,149
(630)| |||12,519| |||**Total funds**
**at 31**
**December**
**2022**
**£**
27,958
(600)| |||27,358| Page 26