Charity number: 294953
The Traidcraft Foundation
Report and Financial Statements
For the Year Ended 31 March 2024
The Traidcraft Foundation
CONTENTS
| Page | |
|---|---|
| Trustees’ Report including the Strategic Report | 1 - 8 |
| Independent Auditors’ Report | 9 - 12 |
| Consolidated Statement of Financial Activities | 13 |
| Consolidated Balance Sheet | 14 |
| Parent Charity Balance Sheet | 15 |
| Consolidated Cash Flow Statement | 16 |
| Notes to the Financial Statements | 17 - 40 |
The Traidcraft Foundation
TRUSTEES’ REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The Trustees present their annual report and audited financial statements of The Traidcraft Foundation for the year ended 31 March 2024.
The trustees confirm that the annual report and financial statements of the company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES Policies and objectives
The Traidcraft Foundation was established in 1979.
The aim of the Traidcraft Foundation has been to deliver its mission through the complementary activities of its charity, Traidcraft Exchange (now Transform Trade), and of its sister organization, the trading company, Traidcraft plc, until it went to administration in January 2023.
The Foundation's task is to ensure that all parts of the Traidcraft family remain focused on the founding principles, vision and mission of Traidcraft, as set out below, and to support the Board of Traidcraft Exchange (now Transform Trade) as they implement activities for the benefit of poor producers in the developing world.
Traidcraft plc entered into administration in January 2023 as the business was no longer viable. The Foundation engaged regularly with the administrators and with the board of Traidcraft Exchange to support both parties and facilitate an orderly windup of the affairs of Traidcraft plc and to ensure the vital work of Traidcraft Exchange could continue effectively.
The trustees of the Foundation are very grateful to the board, Chief Executive, management and staff of Traidcraft Exchange as well as to the administrators for their work during this difficult time.
Traidcraft Foundation continues to support Traidcraft Exchange as it works closely with producers to reduce the inevitable impact of Traidcraft plc ceasing to trade.
Traidcraft Foundation’s principles are as follows:
Traidcraft is a Christian response to poverty. Our mission is fighting poverty through trade. We respect all people and the environment. We abide by and promote fair business practices. We strive to be transparent and accountable.
1
The Traidcraft Foundation
TRUSTEES’ REPORT (Continued)
FOR THE YEAR ENDED 31 MARCH 2024
Traidcraft's visio n: A world freed from the scandal of poverty, where trade is just and people and communities can flourish.
Traidcraft's mission: We fight poverty through trade, pioneering, practising and promoting approaches to trade that help poor people in developing countries transform their lives.
A Christian response to poverty, Traidcraft seeks to work with people of all faiths and none.
The Foundation is a trust comprising five or more trustees who meet periodically. It has neither staff nor any place of business and does not undertake any fundraising activities. The Traidcraft Foundation is a registered charity, whose formal objectives are:
The prevention and relief of poverty and sickness in those countries included in the list of Developing Countries as agreed from time to time by the trustees, Traidcraft Exchange and Traidcraft pic, until it ceased to trade, in accordance with the Deed of Covenant;
The promotion for the benefit of the public and studies in theological, political, social, technical and economic subjects and other educational subjects;
The promotion for the benefit of the public of education and dissemination of knowledge in these subjects with particular (but not exclusive) reference to the problems of economic and social developing in Developing Countries arising from national and international trading practices;
The advancement of the Christian religion by commending that religion to persons in Developing Countries and elsewhere;
The promotion of other charitable purposes in Developing Countries in particular (by using any means available to it including its rights as members or shareholders) by defending the Christian basis underlying the operations of Traidcraft pic and Traidcraft Exchange, promoting the connections between the Christian faith and the principles of fair trade, stimulating, challenging and helping those bodies to develop distinctively Christian approaches to their work and representing to the boards of Traidcraft pic, until the point it ceased to trade, and Traidcraft Exchange the interests and opinions of stakeholders, especially of those overseas producer groups and partners.
Strategies for achieving objectives
The Foundation is the founder member of Traidcraft Exchange and appoints the trustees of Traidcraft Exchange. The Foundation seeks to encourage all parts of the Traidcraft group to carry forward its work in accordance with the Traidcraft Foundation Principles.
Our aims fully reflect the purposes that the Foundation was set up to further. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees have considered how planned activities will contribute to the aims and objectives they have set.
Our main activities are described below. All our charitable activities are undertaken to further our charitable purposes and for the public benefit.
Principal activities
The Traidcraft Foundation trustees met periodically during the year to review the work of Traidcraft. The Chair of the Foundation trustees has continued to meet new recruits to the Board of Traidcraft Exchange ahead of their appointments.
The Traidcraft Foundation does not carry out any fundraising activities.
We continued to support Traidcraft Exchange following its review and rework of its organizational strategy and its commitment to following a different approach to its work.
2
TRUSTEES’ REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024
The Traidcraft Foundation
Please refer to the Traidcraft Exchange published accounts for more detail on activities during the year.
Discussions are underway between the Foundation and the board of Traidcraft Exchange about a more streamlined structure, to reflect the closure of Traidcraft plc.
Financial review
The consolidated results for the year ended 31 March 2024 are set out in detail in the financial statements below. The net incoming resources for the Foundation (before consolidation) for the year was £. Nil (2023: £ Nil).
The Foundation (before consolidation) has gross incoming resources of £. Nil (2023: £. Nil). The Foundation is funded by Traidcraft Exchange. The trustees believe that the assets of the Foundation are available and adequate to fulfil its obligations.
Traidcraft Exchange's board approved a deficit budget of £.341,249 for 23/24 against a strong unrestricted reserves position as at 31st March 2023 of £1,152,777 (re-stated), which had been built up through surpluses in the previous two years. It also supported Traidcraft Exchange's shift in strategy and an increasing portfolio funding to support that.
On the first full year since Traidcraft plc closed, Traidcraft Exchange has shown continued resilience posting a notable lower overall net deficit of £ 600,281 (2022/23: £ 916,095 re-stated deficit).
This has reduced Traidcraft Exchange's general unrestricted reserves to £.294,286.
Reserves policy
The trustees have endorsed the view of the trustees of Traidcraft Exchange that they consider it prudent that Traidcraft Exchange should seek to maintain unrestricted reserves at a level sufficient to meet matched funding requirements, budgeted staff, overheads and fundraising costs. When calculating unrestricted reserves, fixed assets and investments are excluded due to their illiquid nature.
Whereas the organization has reported a deficit for the past two years now, a more positive outlook is projected for the financial year 24/25 and beyond. The trustees have approved an achievable surplus budget for the financial year 24/25 and Management further projects a modest surplus budget for year 25/26.
As Traidcraft Exchange guarantees to cover reasonable expenses of the Traidcraft Foundation, its reserves are kept at approximately £2,000.
Principal risks and uncertainties
We, through Traidcraft Exchange:
Continued to embed our new strategy and to transform as an organization in line with our commitment to shifting power and delivered a number of significant milestones.
Continued to pilot new approaches, in particular our participatory grant-making pilot in Kenya, which has evidenced the power of the process to shift mindsets and to enable longer term sustainable change.
Invested heavily in internal cultural change to mirror our commitment externally to do more to shift power and to become locally-led.
We launched a Producer Fund in the wake of the closure of the plc and with the generous support of long-term givers, were able to provide grants and accompaniment support to producers who lost their market with Traidcraft and needed to pivot.
3
TRUSTEES’ REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024
The Traidcraft Foundation
The trustees have assessed the major risks to which the group and the charity are exposed, in particular those related to the operations and finances of the group and the charity, and are satisfied that there are systems and procedures in place to mitigate exposure to the major risks.
The key financial risks that Traidcraft Exchange faces are around our less predictable income streams, such as legacies and public appeals.
The situation around Traidcraft pic had been a significant source of financial risk in 22/23 and 23/24, but since Traidcraft plc closed in January 2023, the liabilities became known and there will be less risk in future in this regard.
Another key risk is the challenges in finding match funding in relation to some of Traidcraft Exchange's institutional grants. This is mitigated by calculating a specific part of the minimum reserves target that needs to held in respect of any funds that are yet to be raised.
The final area of risk is related to the shift in Traidcraft Exchange's strategy and finding new sources of more flexible funding to support that shift. This creates a financial risk as well as a risk that we might not fully achieve our objectives. This is being mitigated by management adopting more adaptive approaches to planning and budgeting in 24/25 and beyond.
Going concern
After making enquiries, the trustees have a reasonable expectation that Traidcraft Foundation has adequate resources to continue in operational existence for the foreseeable future. They have paid particular attention to the likely impact of a further unrestricted deficit in 2024/25.
In view of the deficit in 23/24, the trustees have therefore taken particular care in reviewing the going concern basis. When reviewing their decision, they have taken the following factors into account:
Traidcraft Exchange prepares an annual cashflow forecast as part of its budgeting process. The cashflow forecast is monitored on a monthly basis. Further, expenditure levels are monitored against budget on a monthly basis through cost center reports.
Traidcraft Exchange has not encountered any difficulty in paying its creditors within agreed payment terms. In general, most of our institutional donors provide their grants in advance of spending.
Cashflow projections for the year following approval of these financial statements show that the charity will have adequate funds to meet its liabilities as they fall due.
Traidcraft Exchange has set an achievable budget for the year 24/25 which should return a modest unrestricted surplus.
For these reasons, the trustees continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
4
The Traidcraft Foundation
TRUSTEES’ REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024
Structure, governance and management
Constitution
The Traidcraft Foundation is registered as a charity set up by a Trust deed (updated 2002).
The Foundation has also entered into a Deed of Mutual Covenant with Traidcraft plc and Traidcraft Exchange, dated December 2002.
The Foundation controls the composition of the board of Traidcraft Exchange and the accounts of Traidcraft Exchange are consolidated with those of the Foundation.
The Foundation also controlled the Guardian Share in Traidcraft plc, until it closed down, which conferred certain protective powers. For example, the trustees had to give specific assent to change the Articles of Association of Traidcraft pic, wind up the company, appoint a director or Chair of the Board, or make any fundamental change to the operation of the company.
Methods of appointment or election of trustees
The management of the group and the charity is the responsibility of the trustees who are elected and co-opted under the terms of the Trust deed.
Four trustees resigned during the year, that is, David Nussbaum, Rev Tariro Matsveru, Alison I ~~in~~ glis-Jones and Jane Cotton resigned in January 2024. In January 2024, 3 new trustees were appointed, that is, Stephen Bonnick, Clive Osmond and Alison Margaret Coutts.
Appointments are made following the recommendations of a nominations committee, which currently comprises Sir Stephen Timms (Chair of the Traidcraft Foundation), David Pain (Chair of the board of Traidcraft Exchange) and David Neale (the then Chair of the board of Traidcraft plc).
Training is available for new trustees and other trustees as necessary. A detailed induction pack and process is provided for each new trustee.
Plans for future periods
The Traidcraft Foundation will work closely with the board of Traidcraft Exchange to ensure any changes in structure and strategy remain focused on the founding principles, vision and mission of Traidcraft.
Since March 2023 we have continued to engage with the administrators and the Traidcraft Exchange to navigate the winding up of Traidcraft plc. Traidcraft Exchange successfully bid for and secured the license to the Traidcraft brand and have been developing a portfolio of business partnerships that deliver impact and continue the legacy of Traidcraft.
We continue to support Traidcraft Exchange as they move forward with their new strategy and the shift of approach to become a participatory grant-maker, facilitator and advocate.
As Traidcraft plc no longer exists, we have reviewed the role of the Traidcraft Foundation and are exploring merging the Foundation into Traidcraft Exchange. This will simplify the governance structure and enable greater accountability to the charity's primary stakeholders.
5
The Traidcraft Foundation
TRUSTEES’ REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024
Disclosure of information to auditor
Each of the persons who are trustees at the time when this trustees' report is approved has confirmed that:
- so far as that trustee is aware, there is no relevant audit information of which the charitable group's auditor is unaware, and
• that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditor is aware of that information.
Auditor
Following a tender process, the tender committee recommended the appointment of CLA Evelyn Partners as auditors for the 2024 financial year. This recommendation was approved during the last AGM.
6
TRUSTEES’ REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024
The Traidcraft Foundation
REFERENCE AND ADMINISTRATIVE DETAILS
Charity number: 294953 Registered office: Kingsway, Team Valley Trading Estate, Gateshead, NE11 ONE
Advisors Auditors CLA Evelyn Partners Limited 17 Queens Lane, Newcastle upon Tyne, NE1 1RN Bankers HSBC Bank PLC 110 Grey Street, Newcastle upon Tyne, NE1 6JG
Directors and Trustees
The Directors of The Traidcraft Exchange are the Trustees for the purpose of charity law. The Trustees and officers serving during the year and since the year end were as follows:
Trustees:
Stephen Timms MP (Chair) Jeremy Lefroy Stephen Bonnick (Appointed 26 January 2024) Clive Osmond (Appointed 26 January 2024) Alison Margaret Coutts (Appointed 26 January 2024) David Nussbaum (Resigned 26 January 2024) Rev Tariro Matsveru (Resigned 26 January 2024) Alison Inglis-Jones (Resigned 26 January 2024) Jane Cotton (Resigned 26 January 2024)
7
The Traidcraft Foundation
TRUSTEES’ REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024
STATEMENT OF TRUSTEES RESPONSIBILITIES
The Trustees (who are also Directors of The Traidcraft Foundation for the purpose of company law) are responsible for preparing the Trustees Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare the financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and the incoming resources and application of resources, including the net income or expenditure, of the charity and the group for the year. 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 2015 (FRS 102);
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make judgements and estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on a going concern basis unless it is inappropriate to assume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and the group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.
In so far as the Trustees are aware:
-
there is no relevant audit information of which the charity’s auditors are unaware; and
-
the Trustees have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the auditor is aware of that information.
Approved by the Trustees on …………………. and signed on their behalf by: 23rd Jan 2025
………………………. Stephen Timms MP Chair
8
The Traidcraft Foundation
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE TRAIDCRAFT EXCHANGE FOR THE YEAR ENDED 31 MARCH 2024
Opinion
We have audited the financial statements of The Traidcraft Foundation (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Parent Charity Balance Sheet, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the group’s and parent charity’s affairs as at 31 March 2024, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the parent charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
9
The Traidcraft Foundation
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE TRAIDCRAFT EXCHANGE (continued) FOR THE YEAR ENDED 31 MARCH 2024
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
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the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of directors’ remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 8, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group’s and parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
10
The Traidcraft Foundation
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE TRAIDCRAFT EXCHANGE (continued) FOR THE YEAR ENDED 31 MARCH 2024
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We obtained an understanding of the legal and regulatory framework applicable to both the charity itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the trustees and other management. The most significant were identified as the Charities Act 2011, UK GAAP (FRS102) and relevant tax legislation. We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included:
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confirming with the trustees and management whether they have any knowledge or suspicion of fraud;
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obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
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assessing the risk of management override including identifying and testing a sample of journal entries;
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confirmation received from the banks to verify the balance as on the last day of the accounting year;
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reviewing minutes of meetings of those charged with governance.
Our audit did not identify any key audit matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
11
The Traidcraft Foundation
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE TRAIDCRAFT EXCHANGE (continued) FOR THE YEAR ENDED 31 MARCH 2024
Use of our report
This report is made solely to the charity’s members, as a body, in accordance with Chapter 4 of the Charities (Acounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Craig Henderson (Senior Statutory Auditor) for and on behalf of CLA Evelyn Partners Limited
…23 January 2025..
Statutory Auditor
17 Queens Lane Newcastle upon Tyne NE1 1RN
12
The Traidcraft Foundation
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including consolidated income and expenditure account) FOR THE YEAR ENDED 31 MARCH 2024
| As restated | |||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total |
||
| Funds | Funds | 2024 | 2023 |
||
| Note | £ |
£ | £ | £ |
|
| Income from: | |||||
| Donations and legacies | 4 | 1,879,508 | - | 1,879,508 | 1,439,883 |
| Charitable activities | 5 | 51,386 | 1,446,909 | 1,498,295 | 2,013,912 |
| _ | _ | _ | _ |
||
| Total income | 1,930,894 | 1,446,909 | 3,377,803 | 3,453,795 |
|
| _ | _ | _ | _ |
||
| Expenditure on: | |||||
| Raising funds | 6 | ||||
| Voluntary income sources | 776,149 | - | 776,149 | 726,603 |
|
| Institutional income sources | 114,122 | - | 114,122 | 215,963 |
|
| Charitable activities | 7 | ||||
| Development programmes | 689,951 | 1,702,932 | 2,392,883 | 2,713,822 |
|
| Policy and campaigns | 584,682 | 54,348 | 639,030 | 698,009 |
|
| _ | _ | _ | _ |
||
| Total expenditure | 2,164,904 | 1,757,280 | 3,922,184 | 4,354,397 |
|
| _ | _ | _ | _ |
||
| Net movement in funds before transfers | ( 234,010 ) | ( 310,371 ) | ( 544,381 ) | ( 900,602 ) |
|
| Transfer between funds | 19 | ( 69,546 ) | 69,546 | - | - |
| _ | _ | _ | _ |
||
| Net movement in funds after transfers | ( 303,556 ) | ( 240,825 ) | ( 544,381 ) | ( 900,602 ) |
|
| Other recognised gains/(losses) | |||||
| Unrealised foreign exchange losses | ( 55,924 ) | - | ( 55,924 ) | ( 15,560 ) |
|
| _ | _ | _ | _ |
||
| Net movement in funds | ( 359,480 ) | ( 240,825 ) | ( 600,305 ) | ( 916,162 ) |
|
| Reconciliation of funds | |||||
| Total funds brought forward | 656,072 | 499,035 | 1,155,107 | 2,071,269 |
|
| _ | _ | _ | _ |
||
| Total funds carried forward | 296,592 | 258,810 | 554,802 | 1,155,107 |
|
| _ | _ | _ | _ |
All income and expenditure derive from continuing activities.
The Statement of Financial Activities includes all gains and losses recognised in the year.
13
The Traidcraft Foundation
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2024
| As restated | As restated | ||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| Notes | £ | £ | £ | £ | |
| Fixed assets | |||||
| Intangible assets | 14 | 19,800 | - | ||
| Tangible assets | 13 | 12,045 | 14,743 | ||
| _ | _ | ||||
| 31,845 | 14,743 | ||||
| Current assets | |||||
| Debtors | 16 | 330,894 | 397,755 | ||
| Cash at bank and in hand | 603,984 | 1,618,954 | |||
| _ | _ | ||||
| 934,878 | 2,016,709 | ||||
| Creditors: amounts falling due | |||||
| within one year | 17 | ( 411,921 ) | ( 876,345 ) | ||
| _ | _ | ||||
| Net current assets | 522,957 | 1,140,364 | |||
| _ | _ | ||||
| Net assets | 554,802 | 1,155,107 | |||
| _ | _ | ||||
| Charity Funds | |||||
| Unrestricted funds | 296,592 | 656,072 | |||
| Restricted funds | 258,210 | 499,035 | |||
| _ | _ | ||||
| Total Charity Funds | 19 | 554,802 | 1,155,107 | ||
| _ | _ |
The notes on pages 17 to 40 form part of these financial statements.
The financial statements were approved by the Trustees on ……………….. and signed on their behalf by: 23rd Jan 2025
...............................................
Stephen Timms MP Chair
14
The Traidcraft Foundation
PARENT CHARITY BALANCE SHEET AS AT 31 MARCH 2024
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |
| Current assets | |||||
| Debtors | 16 | 3,000 | 3,000 | ||
| Cash at bank and in hand | 2,305 | 2,330 | |||
| _ | _ | ||||
| 5,305 | 5,330 | ||||
| Creditors: amounts falling due | |||||
| within one year | 17 | ( 3,000 ) | ( 3,000 ) | ||
| _ | _ | ||||
| Net current assets | 2,305 | 2,330 | |||
| _ | _ | ||||
| Net assets | 2,305 | 2,330 | |||
| _ | _ | ||||
| Funds | |||||
| Unrestricted funds | 2,305 | 2,330 | |||
| _ | _ | ||||
| 2,305 | 2,330 | ||||
| _ | _ |
The notes on pages 17 to 40 form part of these financial statements.
The financial statements were approved by the Trustees on ……………. and signed on their behalf by: 23rd Jan 2025
............................................... Stephen Timms MP Chair
15
The Traidcraft Foundation
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024
| As restated | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| Note | £ | £ | |||
| Net cash provided by/(used in) operating activities | 24 | ( 974,104 | ) | ( 1,101,005 ) | |
| Cash flows from investing activities | |||||
| Purchase of tangible assets | - | ( 11,159 ) | |||
| Interest received | 15,058 | 2,738 | |||
| _ | _ | ||||
| Net cash flow from investing activities | 15,058 | ( 8,421 ) | |||
| _ | _ | ||||
| Net decrease in cash and cash equivalents | ( 959,046 | ) | ( 1,109,426 ) | ||
| Cash and cash equivalents at the beginning of the year | 1,618,954 | 2,743,940 | |||
| Change in cash and cash equivalents due to exchange rate movements | ( 55,924 | ) | ( 15,560 ) | ||
| _ | _ | ||||
| Cash and cash equivalents at the end of the year | 603,984 | 1,618,954 | |||
| _ | _ | ||||
| Cash and cash equivalents consist of: | |||||
| Cash at bank and in hand | 603,984 | 1,618,954 | |||
| _ | _ |
16
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
The Traidcraft Foundation
1. Accounting policies
1.1 Basis of preparation of financial statements
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) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice.
The Traidcraft Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The financial statements are prepared under the historical cost convention or transaction value unless otherwise stated in the relevant accounting policy note(s). The financial statements are prepared in Sterling which is the functional currency of the charity and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
1.2 Basis of consolidation
The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because The Traidcraft Exchange has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.
1.3 Going concern
After making enquiries, the trustees have a reasonable expectation that Traidcraft Foundation has adequate resources to continue in operational existence for the foreseeable future. They have paid particular attention to the likely impact of a further unrestricted deficit in 2024/25.
In view of the deficit in 23/24, the trustees have therefore taken particular care in reviewing the going concern basis. When reviewing their decision, they have taken the following factors into account:
Traidcraft Exchange prepares an annual cashflow forecast as part of its budgeting process. The cashflow forecast is monitored on a monthly basis. Further, expenditure levels are monitored against budget on a monthly basis through cost center reports.
Traidcraft Exchange has not encountered any difficulty in paying its creditors within agreed payment terms.
In general, most of our institutional donors provide their grants in advance of spending.
Cashflow projections for the year following approval of these financial statements show that the charity will have adequate funds to meet its liabilities as they fall due.
Traidcraft Exchange has set an achievable budget for the year 24/25 which should return a modest unrestricted surplus.
17
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
The Traidcraft Foundation
For these reasons, the trustees continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
- 1.4 Funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of The Traidcraft Exchange and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by The Traidcraft Exchange for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
1.5 Income
All incoming resources becoming available to the charity during the year are recognised in the Statement of Financial Activities. Income is deferred where incoming resources are received in advance of the service being provided. No incoming resources are stated net of expenditure.
Institutional grants, where related to performance and specific deliverables, are accounted for as the Charity earns the right to consideration by its performance. Where income is received in advance of performance its recognition is deferred and included in creditors. Where entitlement occurs before income is received the income is accrued and included in debtors.
Government grants are recognised when the charity has entitlement to the income, receipt is probable and the amount can be measured reliably.
Listed shares donated during the year are included in donations and valued at estimated market value. Unlisted shares donated during the year are included in donations and valued at estimated market value.
Legacies are recognised as income, in the accounting period, once the Charity has been informed of the amount of a bequest and it can be measured with sufficient reliability.
Investment income is recognised on a receivable basis.
1.6 Expenditure and irrecoverable VAT
Expenditure is brought into the financial statements as it is incurred. Overheads (including management and administration costs) and other non-specific expenditure are allocated between charitable activities and generating funds in proportion to the number of staff employed within each area. This is shown as "overhead allocation" in the notes and apportioned on the basis of staff headcount.
Costs of generating funds are those incurred in seeking voluntary income and grants from institutional sources and do not include the costs of disseminating information in support of the charitable activities. These costs include the salaries, direct expenditure and overhead costs of the staff who promote fundraising.
18
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
The Traidcraft Foundation
Costs of charitable activities represent the salaries and overhead costs of staff directly working in International Programmes and the Policy Unit together with expenditure directly attributable to these activities.
Irrecoverable VAT is charged as a cost to the Statement of Financial Activities.
1.7 Support cost allocation
Support costs represent the costs incurred by finance, IT and human resources attributable to the management of the Charity's assets and organisational administration.
1.8 Tangible fixed assets
Tangible fixed assets costing more than £500 are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.
Office equipment - 25% straight line Computer equipment - 10% straight line
1.9 Intangible fixed assets
Intangible fixed assets are stated at cost less amortisation. Amortisation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following basis:
Capitalised Software - 4 years
1.10 Foreign currencies
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities in foreign currencies are retranslated at the rates of exchange ruling at the balance sheet date. The functional currency of the Group is GBP Sterling.
1.11 Investments
Investments in subsidiary undertakings are held at cost less impairment.
1.12 Stock
Stock is valued at the lower of cost and net realisable value.
1.13 Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.14 Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
19
The Traidcraft Foundation NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
1.15 Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement after allowing for any trade discounts due.
1.16 Pensions
For the defined contribution pension scheme, the pension costs charged to the Statement of Financial Activities represent the amount of the contributions payable in respect of the accounting period.
For the defined benefit schemes the amount charged to the Statement of Financial Activities in respect of pension costs and other post retirement benefits is the estimated regular cost of providing the benefits accrued in the year, adjusted to reflect variations from that cost. The interest cost and expected return on assets are included within other finance costs.
Actuarial gains and losses arising from new valuations and from updating valuations to the balance sheet date are recognised in the Statement of Financial Activities.
Defined benefit schemes are funded, with the assets held separately from the group in separate trustee administered funds. Full actuarial valuations, by a professionally qualified actuary, are obtained at least every three years, and updated to reflect current conditions at each balance sheet date. The pension scheme assets are measured at fair value. The pension scheme liabilities are measured using the projected unit method and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency. A pension scheme asset is recognised on the balance sheet only to the extent that the surplus may be recovered by reduced future contributions or to the extent that the trustees have agreed a refund from the scheme at the balance sheet date. A pension scheme liability is recognised to the extent that the group has a legal or constructive obligation to settle the liability.
The administration costs of running the closed defined contribution scheme are charged to the Statement of Financial Activities. Further details are provided in the notes to the accounts.
1.17 Financial instruments
The Traidcraft Exchange only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.18 Judgements and key sources of estimation uncertainty
In the application of the charitable company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
20
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
The Traidcraft Foundation
1.19 Judgements and key sources of estimation uncertainty (continued)
Key estimates included within these financial statements include assumptions regarding discount rates and mortality in calculating the value of retirement benefits. Trustees keep these assumptions under review and employ the services of qualified actuaries to calculate the resulting expected asset or liability to the charity in respect of retirement benefits. None of the other estimates made in the preparation of these financial statements are considered to carry significant estimation uncertainty, nor to bear significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
In preparing these financial statements, no significant judgements were required in the process of applying the company's accounting policies.
2. Legal status
The Traidcraft Exchange is a company limited by guarantee, registered in England and Wales, (number 03031674) and not having a share capital. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
21
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
3. Statement of financial activities from the prior year as restated
| Unrestricted | Restricted | Total |
||
|---|---|---|---|---|
| Funds | Funds | 2023 |
||
| Note | £ | £ | £ |
|
| Income from: | ||||
| Donations and legacies | 4 | 1,439,883 | - | 1,439,883 |
| Charitable activities | 5 | 101,820 | 1,912,092 | 2,013,912 |
| _ | _ | _ |
||
| Total income | 1,541,703 | 1,912,092 | 3,453,795 |
|
| _ | _ | _ |
||
| Expenditure on: | ||||
| Raising funds | 6 | |||
| Voluntary income sources | 726,603 | - | 726,603 |
|
| Institutional income sources | 215,963 | - | 215,963 |
|
| Charitable activities | 7 | |||
| Development programmes | 946,522 | 1,767,300 | 2,713,822 |
|
| Policy and campaigns | 676,970 | 21,039 | 698,009 |
|
| _ | _ | _ |
||
| Total expenditure | 2,566,058 | 1,788,339 | 4,354,397 |
|
| _ | _ | _ |
||
| Net movement in funds before transfers | ( 1,024,355 ) | 123,753 | ( 900,602 ) | |
| Transfer between funds | 21 | ( 22,401 ) | 22,401 | - |
| _ | _ | _ |
||
| Net movement in funds after transfers | ( 1,046,756 ) | 146,154 | ( 900,602 ) | |
| Other recognised gains/(losses) | ||||
| Unrealised (losses) | ( 15,560 ) | - | ( 15,560 ) |
|
| _ | _ | _ |
||
| Net movement in funds | ( 1,062,316 ) |
146,154 | ( 916,162 ) |
|
| Reconciliation of funds | ||||
| Total funds brought forward | 1,718,388 | 352,881 | 2,071,269 |
|
| _ | _ | _ |
||
| Total funds carried forward | 656,072 | 499,035 | 1,155,107 |
|
| _ | _ | _ |
22
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
4. Income from donations and legacies
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| £ | £ | ||||
| Donations | 1,534,665 | 1,267,691 | |||
| Legacies | 328,693 | 147,920 | |||
| Other donations | 16,150 | 24,272 | |||
| _ | _ | ||||
| 1,879,508 | 1,439,883 | ||||
| _ | _ | ||||
| 5. | Charitable activities | ||||
| Unrestricted | Restricted | ||||
| Funds | Funds | 2024 | 2023 | ||
| £ | £ | £ | £ | ||
| Grants from institutional sources | - | 1,446,909 | 1,446,909 | 1,912,092 | |
| Consultancy and other income | 51,386 | - | 51,386 | 101,820 | |
| _ | _ | _ | _ | ||
| 51,386 | 1,446,909 | 1,498,295 | 2,013,912 | ||
| _ | _ | _ | _ | ||
| 6. | Costs of generating funds | ||||
| Voluntary income | |||||
| 2024 | 2023 | ||||
| £ | £ | ||||
| Travel and accommodation | 348 | 544 | |||
| Direct costs | 297,581 | 241,814 | |||
| Support costs | 167,379 | 167,400 | |||
| Direct salaries | 310,841 | 316,845 | |||
| _ | _ | ||||
| 776,149 | 726,603 | ||||
| _ | _ | ||||
| Institutional sources | |||||
| 2024 | 2023 | ||||
| £ | £ | ||||
| Support costs | 114,122 | 145,530 | |||
| Direct salaries | - | 70,433 | |||
| _ | _ | ||||
| 114,122 | 215,963 | ||||
| _ | _ |
23
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
7. Analysis of expenditure on charitable activities
| Unrestricted | Restricted | Total | Total |
|
|---|---|---|---|---|
| funds | funds | 2024 | 2023 |
|
| Development Programmes | £ | £ | £ | £ |
| Direct salaries | 453,310 | 289,410 | 742,720 | 782,643 |
| Travel and accommodation | 15,261 | 55,628 | 70,889 | 111,082 |
| Direct programme costs | 220,469 | 1,265,225 | 1,485,670 | 1,655,888 |
| Support costs (Note 8) | 912 | 92,668 | 93,580 | 164,209 |
| _ | _ | _ | _ |
|
| 689,952 | 1,702,931 | 2,392,883 | 2,713,822 |
|
| Policy Unit and Campaigning | ||||
| Direct salaries | 313,259 | 42,072 | 355,331 | 406,277 |
| Travel and accommodation | 2,685 | 1,525 | 4,210 | 752 |
| Direct programme costs | 3,975 | 10,752 | 14,727 | 22,275 |
| Support costs (Note 8) | 264,763 | - | 264,763 | 164,209 |
| _ | _ | _ | _ |
|
| 584,682 | 54,348 | 639,030 | 698,009 |
|
| _ | _ | _ | _ |
|
| 1,274,610 | 1,757,279 | 3,031,913 | 3,411,831 |
|
| _ | _ | _ | _ | |
| Support costs | ||||
| Voluntary | Institutional | Development | Policy & |
|
| Income | Sources | Programmes | Campaigning | |
| £ | £ | £ | £ |
|
| Management and admin salaries | 114,622 | 78,152 | 64,084 | 181,312 |
| Governance | 20,061 | 13,678 | 11,216 | 31,733 |
| Office services | 20,248 | 13,805 | 11,320 | 32,028 |
| Office machinery and consumables | 1,665 | 1,135 | 931 | 2,634 |
| Financial services | 10,783 | 7,352 | 6,029 | 17,057 |
| _ | _ | _ | _ |
|
| 167,379 | 114,122 | 93,580 | 264,763 |
|
| _ | _ | _ | _ | |
| 2024 | 2023 |
|||
| £ | £ |
|||
| Management and admin salaries | 438,170 | 462,308 |
||
| Governance | 76,687 | 89,765 |
||
| Office services | 77,401 | 129,726 |
||
| Office machinery and consumables | 6,365 | 15,632 |
||
| Financial services | 41,220 | 48,414 |
||
| _ | _ |
|||
| 639,843 | 745,845 |
|||
| _ | _ |
8. Support costs
24
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
Support costs have been apportioned based on the number of full-time staff equivalents in each department.
Management and administration salaries include the salaries of staff working in Finance, HR, Public Relations and Communications and general management. It also includes recruitment, relocation, training and other staff costs.
Office services include rent, insurance and general office running expenses. Office machinery and consumables include depreciation and non-capital office furniture, fittings and equipment.
Financial services include bank charges, irrecoverable VAT and membership fees and subscriptions. PR & Comms is the cost of preparing communications for the charity and includes the cost of trips to visit projects to provide reports to our supporters.
9. Net expenditure for the year
Net income is stated after charging;
| Amortisation Depreciation Operating lease costs Unrealised exchange rate losses Auditors remuneration |
2024 £ 2,200 11,172 57,004 55,924 27,500 _ |
2023 £ - 12,709 53,890 15,560 15,500 _ |
|---|---|---|
10. Auditors remuneration
The auditors remuneration amounts to an audit fee of £27,500 (2023 - £15,500).
11. Financial performance of the charity
The Consolidated Statement of Financial Activities includes the results of the wholly owned subsidiaries.
The summary financial performance of the charity alone is;
| Income Expenditure Unrealised losses Net (deficit) / surplus |
2024 £ - ( 25 ) - _ ( 25 ) _ |
|---|---|
25
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
12. Analysis of staff costs, Trustee remuneration and expenses, and the cost of key management personnel
The total staff costs and employees benefits were as follows:
| The total staff costs and employees benefits were as follows: | ||
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Wages and salaries | 1,053,790 | 1,015,691 |
| Social security costs | 86,714 | 70,011 |
| Other pension costs | 105,743 | 105,206 |
| Overseas salaries and staff costs | 793,273 | 801,044 |
| _ | _ | |
| 2,039,520 | 1,991,952 | |
| _ | _ | |
| The average number of employees during the year was as follows: | ||
| 2024 | 2023 | |
| Group | Group | |
| Development programmes and Policy Unit | 49 | 39 |
| Fundraising | 13 | 12 |
| Management and administration | 9 | 6 |
| _ | _ | |
| 71 | 57 | |
| _ | _ |
The number of employees who received total employee benefits (excluding employer pension costs) of more than £60,000 is as follows:
| In the band £60,001 - £70,000 In the band £70,001 - £80,000 In the band £90,001 - £100,000 |
Number 2024 1 1 1 _ 3 _ |
Number 2023 1 1 1 _ 3 _ |
|---|---|---|
26
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
The Traidcraft Foundation
12. Analysis of staff costs, Trustee remuneration and expenses, and the cost of key management personnel expenses (continued)
The Trustees were not paid or received any other benefits from employment in the year (2023 – £nil). No Trustee received payment for professional or other services supplied to the charity (2023 - £nil).
The total employee benefits of the key management personnel of the charity were £526,934 (2023 - £640,990).
13. Tangible fixed assets Consolidated
| Fixtures, fittings and equipment £ Cost At 1 April 2023 142,990 Additions 6,596 Disposals ( 8,134 ) _ At 31 March 2024 141,452 _ Depreciation and impairment At 1 April 2023 128,247 Charge for the year 6,781 Disposals ( 5,621 ) _ At 31 March 2024 129,407 _ Net book value At 31 March 2024 12,045 _ At 31 March 2023 14,743 _ |
Total £ 142,990 6,596 ( 8,134 ) _ 141,452 _ 128,247 6,781 ( 5,621 ) _ 129,407 _ 12,045 _ 14,743 _ |
|---|---|
There are no fixed assets in the parent charity.
27
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
| 14. Intangible assets Consolidated Cost At 1 April 2023 Additions Disposals At 31 March 2024 Amortisation At 1 April 2023 Charge for the year Eliminated on disposal At 31 March 2024 Net book value At 31 March 2024 At 31 March 2023 There are no intangible fixed assets in the parent charity. |
IT systems £ 33,245 22,000 ( 13,776 ) _ 41,469 _ 33,245 2,200 ( 13,776 ) _ 21,669 _ 19,800 _ - _ |
Total £ 33,245 22,000 ( 13,776 ) _ 41,469 _ 33,245 2,200 ( 13,776 ) _ 21,669 _ 19,800 _ - _ |
|---|---|---|
15. Investments
The investments include shares in Traidcraft plc which are not listed on any stock exchange and which were donated to Traidcraft Exchange by supporters. At 31 March 2024, the Traidcraft plc shares were not being traded so the trustees valued the shares at nil. Due to the illiquid nature of these shares the trustees believed it was appropriate to classify them as a fixed asset investment.
28
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
| Percentage | ||||
|---|---|---|---|---|
| Company | Country | Shareholding | Description | |
| Traidcraft Services India | ||||
| Private Limited | India | 100% | Ordinary | |
| The results and summary of assets and liabilities of the company are as follows: | ||||
| 2024 | ||||
| £ | ||||
| Turnover | 133,022 | |||
| Cost of sales | ( 167,006 ) | |||
| Administrative expenses | ( 24,608 ) | |||
| _ | ||||
| Loss for the year | ( 58,592 ) | |||
| _ | ||||
| 2024 | ||||
| £ | ||||
| Total assets | 43,170 | |||
| Total liabilities | ( 18,563 ) | |||
| _ | ||||
| Shareholders’ funds | 24,607 | |||
| _ | ||||
| Percentage | ||||
| Company | Country | Shareholding | Description | |
| The Traidcraft Exchange | UK | 100% | Ordinary | |
| The results and summary of assets and liabilities of the company are as follows: | ||||
| 2024 | ||||
| £ | ||||
| Income | 3,244,781 | |||
| Expenditure | ( | 3,755,154 ) | ||
| Unrealised losses | ( 55,924 ) | |||
| _ | ||||
| Loss for the year | ( 566,297 ) | |||
| _ | ||||
| 2024 | ||||
| £ | ||||
| Total assets | 891,119 | |||
| Total liabilities | ( 378,715 ) | |||
| _ | ||||
| Funds | 512,404 | |||
| _ |
29
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
16. Debtors
| Group Group 2024 2023 £ £ Trade debtors 11,851 19,168 Amounts owed from subsidiary undertakings - - Prepayments and accrued income 233,683 336,914 Other debtors 85,360 41,673 _ _ 330,894 397,755 _ _ 17. Creditors: amounts falling due within one year Group Group 2024 2023 £ £ Trade creditors 44,573 57,937 Social Security and taxes 24,050 34,326 Accruals and deferred income 339,579 743,807 Other creditors 3,720 40,275 _ _ 411,922 876,345 _ _ Deferred income Group Group 2024 2023 £ £ Deferred income at 01 April 2023 815,674 852,708 Deferred during the year 135,283 601,531 Amounts released ( 815,674 ) ( 852,708 ) _ _ Deferred income at 31 March 2024 135,283 601,531 _ _ |
Parent Charity 2024 2023 £ £ - - 3,000 3,000 - - - - _ _ 3,000 3,000 _ _ Parent Charity 2024 2023 £ £ - - - - 3,000 3,000 - - _ _ 3,000 3,000 _ _ Parent Charity 2024 2023 £ £ - - - - - - _ _ - - _ _ |
|---|---|
Deferred income relates to funds received from Institutional donors that have not been spent at the year end. It will be spent on planned future project activities. The majority will be spent in 24/25. Income will be recognised as the monies are utilised, in line with the funding agreements.
18. Operating leases
The future minimum lease payments under non-cancellable operating leases are as follows;
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Not later than one year | 17,367 | 24,901 |
| Later than one and not later than five years | 15,587 | 15,805 |
| _ | _ | |
| 32,954 | 40,706 |
30
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
19. Fund reconciliation
Year ended 31 March 2024
| Balance at 1 April Transfers Unrestricted funds 2023 Income Expenditure General fund 387,072 1,930,894 ( 2,164,904 ) 129,454 Designated fund Organisation systems strengthening work 269,000 - - ( 199,000 ) _ _ _ _ 656,072 1,930,894 ( 2,164,904 ) ( 69,546 ) Restricted funds JRCT land grab research Project 6,463 - - - Khamatayan project 2,754 - ( 827 ) - Hidden Homeworkers project 17,944 141,077 ( 136,988 ) - Tanzania - Disability project - 22,223 ( 16,803 ) - Matrix Causes Fund 5,000 - - - West Bengal Women Farmers 21,961 2,000 - - Juicing Justice project 500 - - - OAK Foundation project (Pahariya Jharkhand project) 100,269 - ( 132,009 ) 31,740 C&A Textiles ( 2,051 ) - 50 2,001 Supporting Tea Workers project (COVID-19 Response Fund) ( 3,262 ) - - 3,262 Fighting forced labor- Muktee project - 8,499 ( 10,272 ) 1,773 Oak - Tea Project 196,136 - ( 181,135 ) - Laudes foundation 5,418 - - - Laudes Garment Work 83,288 89,986 ( 54,398 ) - Empowering Women CSOs (WEE) project 5,000 692,842 ( 666,092 ) - UKAM- PPP project - 224,994 ( 224,999 ) 5 Strengthing Farmers Association - 214,482 ( 209,600 ) - Muktee II: Strengthening (Women CSOs) 17,493 10,000 ( 18,268 ) - Coffee, Cocoa & Palm oil (CCP) ( 93 ) 10,273 ( 2,426 ) - Halcrow Foundation 3,739 - ( 24,603 ) 20,864 Participatory Grant Making (PGM) Pilot 38,476 30,533 ( 78,910 ) 9,901 _ _ _ _ Total restricted funds 499,035 1,446,909 ( 1,757,280 ) 69,546 _ _ _ _ Total funds 1,155,107 3,377,803 ( 3,922,184 ) - _ _ _ _ 31 |
Balance at Gains/ 31 March (losses) 2024 ( 55,924 ) 226,592 - 70,000 _ _ ( 55,924 ) 296,592 - 6,463 - 1,927 - 22,033 - 5,420 - 5,000 - 23,961 - 500 - - - - - - - - - 15,001 - 5,418 - 118,876 - 31,750 - - - 4,882 - 9,225 - 7,754 - - - - _ _ - 258,210 _ _ ( 55,924 ) 554,802 _ _ |
|---|---|
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
19. Fund reconciliation (Continued)
Year ended 31 March 2023 as restated
| Balance at | Balance at | Balance at | |||||
|---|---|---|---|---|---|---|---|
| 1 April | Transfers | Gains/ | 31 March | ||||
| Unrestricted funds | 2022 | Income | Expenditure | (losses) | 2023 | ||
| General fund | 1,449,388 | 1,541,703 | ( 2,566,058 ) | ( 22,401 ) | ( 15,560 ) | 387,072 | |
| Designated fund | |||||||
| Portfolio work | 269,000 | - | - | - | - | 269,000 | |
| _ | _ | _ | _ | _ | _ | ||
| 1,718,388 | 1,541,703 | ( 2,566,058 ) | ( 22,401 ) | ( 15,560 ) | 656,072 | ||
| Restricted funds | |||||||
| JRCT land grab research | |||||||
| Project | 8,678 | - | ( 2,215 ) | - | - | 6,463 | |
| Khamatayan project | 2,754 | - | - | - | - | 2,754 | |
| Hidden Homeworkers project | 2,944 | 220,261 | ( 205,261 ) | - | - | 17,944 | |
| Tanzania - Disability project | 29,563 | 88,572 | ( 118,135 ) | - | - | - | |
| Catalyst fund | 95,000 | - | ( 95,000 ) | - | - | - | |
| Participatory Approach Pilot | |||||||
| of Women’s Empowerment | 65,512 | 5,000 | - | ( 70,512 ) | - | - | |
| Matrix Causes Fund | 5,000 | - | - | - | - | 5,000 | |
| Sustainable Agriculture & Women | |||||||
| Advancement (SAWA) | ( 50,875 ) |
36,036 | 14,839 | - | - | - | |
| West Bengal Women Farmers | - |
21,961 | - | - | - | 21,961 | |
| Juicing Justice project | - | 10,800 | ( 10,300 ) | - | - | 500 | |
| OAK Foundation project | |||||||
| (Pahariya Jharkhand project) | 69,369 | 189,486 | ( 158,586 ) | - | - | 100,269 | |
| C&A Textiles | - | 16,773 | ( 18,824 ) | - | - | ( 2,051 ) | |
| Supporting Tea Workers project | |||||||
| (COVID-19 Response Fund) | 3,271 | - | ( 6,533 ) | - | - | ( 3,262 ) | |
| Fighting forced labor- | |||||||
| Muktee project | 104,738 | 63,535 | ( 122,446 ) | ( 45,827 ) | - | - | |
| Oak - Tea Project | - | 338,570 | ( 142,434 ) | - | - | 196,136 | |
| Laudes foundation | 5,418 | - | - | - | - | 5,418 | |
| Laudes Garment Work | - | 83,288 | - | - | - | 83,288 | |
| Empowering Women CSOs | |||||||
| (WEE) project | - | 590,038 | ( 585,038 ) | - | - | 5,000 | |
| UKAM- PPP project | - | 238,356 | ( 238,356 ) | - | - | - | |
| Strengthing Farmers Association - |
- | ( 22,401 ) | 22,401 | - | - | ||
| Muktee II: Strengthening (Women | |||||||
| CSOs) | - | - | ( 28,334 ) | 45,827 | - | 17,493 | |
| Coffee, Cocoa & Palm oil (CCP)( 2,210 ) | 9,416 | ( 7,299 ) | - | - | ( 93 ) |
32
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
| Halcrow Foundation 13,719 - ( 9,980 ) Participatory Grant Making (PGM) Pilot - - ( 32,036 ) _ _ _ Total restricted funds 352,881 1,912,092 ( 1,788,339 ) _ _ _ Total funds 2,079,269 3,453,795 ( 4,354,397 ) |
- 70,512 _ 22,401 _ - |
- 3,739 - 38,476 _ _ - 499,035 _ _ ( 15,560 ) 1,155,107 |
|---|---|---|
South Asia Programme
‘MUKTEE: Fighting Forced Labour with Adivasi and Dalit Communities in South Asia’: Ref No. COOPRS/D (2018) 6764770) is a four year project funded by the European Commission. It was planned in order to address the systemic and structural vulnerabilities of agricultural communities to forced, bonded, and child labour in two districts of Northern Bangladesh and four districts of Madhya Pradesh, India. It worked on multiple fronts, namely rescuing and rehabilitating communities from bonded labour conditions; preventing future bondage through skill development and employment opportunities; support enterprise through developing supply chains of agricultural commodities in the local areas; and strengthening policy interventions. 8,000 households and 20,000 children were to benefit directly from this project. The project received a no-cost extension until the end of June 2022 and currently work is being to complete the evaluation and final reporting. The total cost is €1,131,809.
Hidden Homeworkers – Improving Transparency and Traceability to Improve Working Conditions of Homeworkers in Apparel and Footwear Chains: Ref No EuropeAid/157515/dh/act/Multi is a project that started in April 2019. The objective is to improve the working conditions of informal and home based workers in Nepal, Pakistan and India, who work in global value chains in the apparel and footwear sectors. It is expected to impact the lives of 20,000 home based workers in this country through improved working conditions, access to social entitlements and policy change at the national level. The project is progressing well, though has to undergo some changes due to the impact of covid on home workers. A no-cost extension is now proposed and the details are being worked out. The total cost is €1,308,922.
Bangladesh
‘Khamatayan’ (Empowering smallholders to strengthen local democratic governance) is being implemented in Bangladesh in partnership with Christian Aid and Solidarites and funded by the European Commission. The objective is to strengthen the governance, accountability and sustainability of smallholder civil society organisations in Bangladesh, covering 24 district and sub district associations, and 788 village level Self help Groups (SHGs). The project planned to empower these organisations, representing 20,000 marginal famers (50% women, 10% ethnic minorities, 5% disabled people) to proactively engage with Local Authorities in the five target districts of Gaibandha, Kurigram, Mymensingh, Sherpur and Satkhira. The total cost of this 42 month project is €1,653,149.
Empowering women’s CSOs to ensure good governance (WEE): Ref No EuropeAid/168903/DD/ACT/BD is a 42 month project starting February 2021 and will impact the lives of 15,000 women in 5 districts of Bangladesh, in partnership with Ulashi Sreejony Sangha (USS) and Bikash Bangladesh. The project will build capacity of women’s grassroot organisations to advance gender equality and empowerment and enable their participation in local governance. It will support women to access social and economic rights; and strengthen women’s collective voice through their own organisations. The total cost is €2,592,595.
33
The Traidcraft Foundation NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
Shifting the power to grassroots’ communities through strengthening farmer-led CSOs and improving
their engagement in the sustainable development process (SWABOL).
The project started in April 2023 through a Traidcraft Exchange led consortium of six NGOs in 33 disadvantaged upazialas (sub-districts) of 13 districts across Bangladesh. The work focuses on enhancing human and social capital and strengthening Smallholder Farmer-led Civil Society Organizations (FSFCSOs) as independent institutions and actors of good governance to promote inclusive and sustainable development. The project targets 46 FSFCSOs and 1,580 Local Farmer Organizations along with 50,000 participants (50% women, 7% ethnic minorities and 5% persons with disabilities). Registration of these FSFCSOs is under process which will ensure legal entity and contribute to their sustainability in the long run.
India
Addressing vulnerabilities among the Pahariya community through market led Interventions: Ref No OFIL 19 003 is a 4 year project aims to “reduce vulnerability and improve sustainable livelihoods and food sovereignty among 3000 Pahariya households, particularly women, in two blocks of Jharkhand”. The 90 villages targeted are comprised of extremely vulnerable Pahariya tribal households alone. This is sought to be achieved by organising and enabling communities to adopt sustainable and productive resource (forest, land and water) management regimes, empowering communities to access their entitlements and engage with the market with a view to sustainably enhance livelihood, income base and nutritional status. The total cost of the project is £631,172 and is funded by the Oak Foundation.
Addressing Socio-Economic Vulnerabilities of Tea Workers in West Bengal and Assam – Building Voices and Creating Choices: The goal of this 3-year project is to reduce socio economic vulnerability, improve livelihoods and resilience of 9,000 Tea worker communities in 5 districts of North Bengal and Assam. The work will be undertaken across 35 gardens of which 25 gardens in North Bengal and 10 gardens in Assam. The project will facilitate building of community voices and create opportunities and choices for tea worker households. The primary focus will be to improve livelihoods and safety nets through a participatory process of assessing needs, resources, skills and opportunities leading to diversification and improvement in incomes. Secondly, collectivisation of women and youth in the gardens and enhancing their knowledge, skills and sense of agency will improve their negotiation and dialogue capacities with officials within and outside the gardens enabling them to access entitlements from the Government. The project will also establish a model of climate adaptive practices through establishing small scale innovations. The total cost of the project is £972,572 and is funded by the Oak Foundation.
Climate resilient sustainable livelihoods for female small holder farmers, (Birbhum, West Bengal): Ref: HF185 is a project in India funded by the Halcrow Foundation. The project aims to organize vulnerable women farmers, improve food security and increase household incomes through livelihood diversification, enhanced water use efficiency, and building resilience through social security safety nets for 2,500 vulnerable families. The project is now in year 2. There are 80 Women Livelihood Committees formed now and work is on to build capacity around governance, micro savings, and resource mapping. Linkages have been built with various government departments to access extension services for a variety of crops as well starting nurseries to benefit other families. The cost of the project is £99,948.
East Africa Programme
Senegal
In 2016/17, ‘Juicing Justice project for Farmers’, started in Senegal, has worked in partnership with two small Senegalese enterprises called Zena and BDS.
34
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
The project, funded by Comic Relief (Grant ID 1324191 – total cost £625,489), has worked with 2,200 forest fruit farmers to acquire environmentally sustainable forest fruit harvesting knowledge and skills, increase their income from sales of exotic forest fruits and improve their livelihoods. It also aims to strengthen the capacity of the two small businesses to trade with the farmers in ethical practices that ensure equitable sharing of risks and benefits as well as develop their capacity to access European markets with innovative juice brands. The project has now ended.
Kenya
Participatory Grant Making (PGM) Pilot: The PGM pilot was launched during the current financial year in partnership with the Kenya Community Development Foundation (KCDF). Through the partnership, we supported six community-based organizations (CBOs) in small scale agriculture, in Meru and Kitui counties of Kenya across three value chains, that is, poultry farming, onion farming and bee keeping, monitored their progress, addressed challenges and disbursed funds to them. Through the pilot, the capacity of the CBOs was enhanced through training, provision of extension services in partnership with government officers and crosslearning through exchange visits to experienced farmers. We plan to continue to maintain the integrity of established structures and adopting a facilitative approach that empowers CBO leadership to make key decisions, we enhanced collaboration, building on our strong track record with local partners and made progress towards project sustainability.
Tanzania
‘Promoting the Inclusion of People with Disabilities in Cocoa, Coffee and Palm Oil Value Chains’.
This project is being implemented by Traidcraft Exchange in Tanzania. It is funded by The National Lottery Community Fund (project ID: 10328877). The project seeks to reduce household poverty and empower 1,000 people with disabilities and 500 smallholder farmers and/or micro entrepreneurs, engaged in the coffee, cocoa and sustainable palm oil in Mbeya Region of Tanzania and Dar es Salaam. The project seeks inclusion of disabled people in all aspects of the value chains through collective organisation, improved access to finance and business services, improved market access and changes in behaviour and practice towards disabled people. The budget for this project is £682,418.
Policy and Campaigning Programme
JRCT
Our policy and campaigning work on corporate accountability has been partially supported by the Joseph Rowntree Charitable Trust. In the last year, we continued to call on the government to legislate to hold companies to account for violating human rights through a Business Human Rights and Environment Act (BHREA). A key aspect of this was a submission (written jointly with the Corporate Justice Coalition) and extensive follow-up advocacy to the Law Commission's Corporate Criminal Liability enquiry, around elements which we believe should be included in a new law. Our request that legislation should cover the failure to prevent human rights abuses was included in the Law Commission’s options paper in June 2022. In addition, we launched a public campaign in favour of BHREA in December 2021 which received 24,622 signatures.
Laudes Foundation
Our policy and advocacy work on textiles in the EU has been supported by Laudes Foundation. In the last year, we have taken forward advocacy on Unfair Trading Practices (UTPs) in the garment sector in the EU, including: holding regular meetings with the European Commission and Members of the European Parliament around the EU’s textile strategy, commissioning research on fair and unfair trading practices, and holding parliamentary events to highlight the impact of garment retailers’ purchasing practices on working conditions, job security and pay for workers.
35
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
20. Analysis of net assets between funds
| Year ended 31 March 2024 | ||||
|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | |
| Funds | Funds | 2024 | 2023 | |
| £ | £ | £ | £ | |
| Tangible assets | 12,045 | - | 12,045 | 14,743 |
| Intangible assets | 19,800 | - | 19,800 | - |
| Current assets | 541,385 | 393,493 | 934,878 | 2,016,979 |
| Creditors amounts due within one year | ( 276,638 ) |
( 135,283 ) | ( 411,921 ) | ( 876,345 ) |
| _ | _ | _ | _ | |
| 296,592 | 258,210 | 554,802 | 1,155,107 | |
| _ | _ | _ | _ | |
| Year ended 31 March 2023 | ||||
| Unrestricted | Restricted | Total | Total | |
| Funds | Funds | 2023 | 2022 | |
| £ | £ | £ | £ | |
| Tangible assets | 14,473 | - | 14,473 | 16,293 |
| Intangible assets | - | - | - | 4,342 |
| Current assets | 916,413 | 1,100,566 | 2,016,979 | 3,139,064 |
| Creditors amounts due within one year | ( 274,814 ) |
( 601,531 ) | ( 876,345 ) | ( 1,090,827 ) |
| _ | _ | _ | _ | |
| 656,072 | 499,035 | 1,155,107 | 2,068,872 | |
| _ | _ | _ | _ |
21. Related Party Transactions
During the year the Charity had transactions with the following related parties:
The Traidcraft Exchange – subsidiary company.
Traidcraft plc – a company with several trustees in common and in which the Traidcraft Foundation controls a protective Guardian Share.
Trustees – the trustees donated £nil (2023 - £nil) during the year.
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| The Traidcraft Exchange | |||
| Reimbursement of expenditure | 3,000 | 3,000 | |
| - | |||
| 2024 | 2023 | ||
| £ | £ | ||
| Traidcraft plc | |||
| Purchase of goods and services (e.g. rent and building costs) | - | 15,832 | |
| Sale of services | - | 30,850 |
36
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
The Traidcraft Foundation
22. Controlling Party
The charity is under the control of the Traidcraft Foundation (charity number 294953), a registered charity with the same place of business, being the founder member and having, in general meetings, the number of votes that exceeds by one the number of all other votes cast.
23. Pension Commitments
The group operates a defined benefit pension scheme.
Until 31 March 2001 Traidcraft operated a defined benefit funded pension scheme covering the pension arrangements of employees of Traidcraft plc and Traidcraft Exchange, providing a pension linked to final salary. This scheme is now closed but not wound-up and Traidcraft plc and Traidcraft Exchange continued to make contributions to it, working with the scheme trustees to agree appropriate contribution levels. Traidcraft plc has been the principal employer within the combined Traidcraft defined benefit pension scheme and Traidcraft Exchange is the participating employer.
In January 2023 Traidcraft plc entered into administration. The scheme actuary has split the assets and liabilities of the original scheme into a Traidcraft plc scheme and a Traidcraft Exchange scheme. Traidcraft Exchange is solely responsible for the Traidcraft Exchange part of scheme and is responsible for meeting the ongoing costs of the Traidcraft Exchange scheme.
The triennial actuarial valuation prepared as at 1 September 2019 indicated that the scheme was in technical surplus.
The charity expects to contribute £nil to the defined benefit pension plan in the year to 31 March 2024. It should be noted that the surplus calculated in the triennial valuation and the surplus or deficit calculated under FRS102 differ as the two methods require different assumptions to be used.
Effective January 2025 Traidcraft Exchange assumed principal employer for the defined benefit pension scheme. The insolvency of Traidcraft plc was scheduled to end by 31st Jan 2025. As at start of Jan 2025, the portion of the pension scheme relating to Traidcraft plc had not yet been transferred to the Pension Protection Fund (PPF). Given the Traidcraft Plc portion of the scheme was still under PPF review, it would not be wound up when the insolvency of Traidcraft Plc was finalized. However, the Traidcraft Exchange portion of the pension scheme ran the risk of being wound up as it did not enjoy similar exemption. To avoid triggering the winding up of the scheme and consequent Section 75 debt being served on Traidcraft Exchange, the Trustees passed a resolution on 17th January 2025 for Traidcraft Exchange to cease to be participating employer and instead take on the prinicpal employer role in the pension scheme.
The Financial Reporting Standard 102 Section 28 requires that the following further disclosure is made about the closed defined benefit pension scheme. The actuarial valuation has been updated by the qualified scheme actuary to 31 March 2024.
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):
37
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
| At 31 March | At 31 March | At 31 March | |
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| % | % | % | |
| Discount rate | 4.7 | 4.6 | 2.6 |
| Expected rate of inflation (CPI) | 3.05 | 2.75 | 3.15 |
| Rate of increase of pensions accrued post 5 April 1997 | 2.9 | 2.75 | 3.15 |
| Rate of revaluation of deferred pensions | 3.05 | 2.75 | 3.15 |
| At 31 March | At 31 March | At 31 March | |
| 2024 | 2023 | 2022 | |
| Mortality rates (in years) | |||
| For a male aged 65 now | 21.3 | 22.1 | 21.3 |
| At 65 for a male aged 45 now | 22.6 | 23.5 | 22.3 |
| For a female aged 65 now | 23.7 | 24.5 | 23.2 |
| At 65 for a female aged 45 now | 25.2 | 26 | 24.4 |
| The group's share of the assets in the scheme was: | |||
| At 31 March | At 31 March | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Equities | 253,000 | 233,000 | |
| Property | 76,000 | - | |
| Gilts | 398,000 | 319,000 | |
| Bonds | 721,000 | 858,000 | |
| Cash | 52,000 | 33,000 | |
| Other | - | - | |
| Total fair value of assets | 1,500,000 | 1,443,000 |
The actual return on scheme assets was £.32,000 (2023: 202,000).
The amounts recognised in the Consolidated statement of financial activities are as follows:
38
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
| At 31 March | At 31 March | |
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Opening defined benefit obligation | 1,382,000 | 1,651,000 |
| Interest cost | 63,000 | 42,000 |
| Benefits paid | ( 42,000 ) | ( 66,000 ) |
| Actuarial gain/(losses) | 60,000 | ( 245,000 ) |
| _ | _ | |
| Closing defined benefit obligation | 1,463,000 | 1,382,000 |
| _ | _ | |
| Reconciliation of fair value of plan assets were as follows: | ||
| £ | £ | |
| Opening fair value of scheme assets | 1,443,000 | 1,711,000 |
| Interest income | 65,000 | 44,000 |
| Return on plan assets excluding interest | ( 33,000 ) | ( 246,000 ) |
| Benefits paid | ( 42,000 ) | ( 66,000 ) |
| Other income/(expenses) | 67,000 | - |
| _ | _ | |
| 1,500,000 | 1,443,000 | |
| _ | _ |
Amounts included in the balance sheet arising from the charity's obligation in respect of defined benefit plans:
| At 31 March | At 31 March | |
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Present value of defined benefit obligations | ( 1,463,000 ) | ( 1,382,000 ) |
| Fair value of plan assets | 1,500,000 | 1,443,000 |
| Restriction of scheme asset | ( 37,000 ) | ( 61,000 ) |
| _ | _ | |
| Deficit in the scheme | - |
- |
| _ | _ |
In the year ended 31 March 2024 the actuarial valuation for ac counting purposed showed a surplus of assets over liabilities at that date of £37,000 (2023: £61,000). In accordance with FRS102 a pension scheme asset is recognised on the balance sheet only to the extent that the surplus may be recovered by reduced future contributions or to the extent that pension scheme trustees have agreed a refund from the scheme at the balance sheet date. Neither condition was met at the balance sheet date and therefore the susplus was not recognised.
Defined contribution scheme:
At 31 March 2001 Traidcraft closed entry to the defined benefit scheme and closed accrual of future benefit within that scheme. On 1 April 2001 Traidcraft introduced a Group Personal Pension Scheme (a type of defined contribution scheme) which now has an employer's contribution rate of 7.5% (2023: 7.5%). Traidcraft Exchange made contributions of £.105,743 during the past year (2023: £.70,011) and this cost, together with administration charges of £.Nil (2023: Nil) relating to the closed scheme comprise the pension cost of £.105,743 (2023: £.70,011) shown in Note 10 to these accounts.
39
The Traidcraft Foundation
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024
24. Reconciliation of net income to net cash flow from operating activities
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Net deficit for the year | ( 544,357 ) | ( 900,535 ) |
| Depreciation on tangible assets | 1,605 | 17,051 |
| Loss on disposal of fixed assets | ( 2,707 ) | - |
| Interest received | ( 15,058 ) | ( 2,738 ) |
| Prior year non cash adjustment | ( 16,000 ) | ( 230,143 ) |
| Decrease in debtors | 66,861 | 13,369 |
| (Decrease)/Increase in creditors | ( 464,424 ) | 2,058 |
| _ | _ | |
| Net cash flow from operating activities | ( 974,079 ) | ( 1,100,938 ) |
| _ | _ |
40