## **BUILD AFRICA**
## **REPORT AND FINANCIAL STATEMENTS**
**for the Year ended 31 March 2021**
Charity Registration No. 298316
Company Registration No. 2200793 (England and Wales)
**BUILD AFRICA**
## **TRUSTEES REPORT AND ACCCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
|**CONTENTS**|**Page**|
|---|---|
|Company information|3|
|Trustees’ report|4|
|Auditors’ report|14|
|Statement of financial activities|18|
|Balance sheet|19|
|Statement of Cash Flows|20|
|Notes to the Financial Statements|21|
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**BUILD AFRICA**
## **TRUSTEES REPORT AND ACCCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
|**COMPANY INFORMATION**|**COMPANY INFORMATION**|
|---|---|
|**Trustee**|Street Child|
|**Charity number**|298316|
|**Company number**|2200793|
|**Registered office &**|33 Creechurch Lane,|
|**principal address**|London EC3A 5EB|
|**Auditors**|Moore Kingston Smith LLP|
||Devonshire House,|
||60 Goswell Road|
||London. EC1M 7AD|
|**Bankers**|National Westminster Bank plc|
||19 Mount Ephraim Road|
||Tunbridge Wells, Kent, TN1 1EN|
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**BUILD AFRICA**
## **TRUSTEES REPORT AND ACCCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **Trustees’ Report**
## **Who we are**
Build Africa is a charity with one ultimate goal: every child learning in school. We have over 20 years’ experience of fighting poverty through education and working with communities at grassroots level to address the problems their children face. We know that education has the power to transform a child's life, give them a more prosperous and healthy future, and help their entire community beat poverty and inequality.
In 2020-21 we operated in Kenya and Uganda.
## **What we do**
We partner with remote and rural communities where children are leaving school without vital basic skills. Our unique approach helps parents and teachers to create sustainable, effective schools and to nurture their children's learning.
## **Public Benefit Statement**
The Charity’s objects are the relief of poverty suffering sickness and distress among such poor persons resident in such areas (whether in the UK or throughout the world) as determined by the Charity.
## **Acquisition by Street Child**
In 2019 Build Africa became part of the Street Child family when Street Child became corporate Trustee of Build Africa. Street Child believes that every child deserves the chance to go to school and learn. They understand the vital role of education in ending poverty and have projects in Kenya and Uganda as we do and in other countries including Democratic Republic of Congo, Sierra Leone and Nigeria in West Africa, as well as in Nepal, Afghanistan and Sri Lanka in Asia. Street Child has high quality programmes that have fuelled rapid growth and it is financially robust.
2020/21 marked a big step forward in the integration of all aspects of Build Africa’s work into Street Child and the realisation of benefits of the combined programming experience of the two organisations. As we had hoped from the charity combination, as a combined group we are able to reach even more children who are not yet getting the education they deserve.
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**BUILD AFRICA**
## **TRUSTEES REPORT AND ACCCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **OUR PROGRAMMES**
## **Improving access to and quality of education in rural areas of Uganda and Kenya**
Working in rural communities in Kenya and Uganda, Build Africa has focused on ensuring that children are safe, in school and learning. To achieve these goals, we have constructed, repaired and renovated existing school infrastructure, we have provided teaching and learning materials and trained teachers in improved teaching practises, child protection and psychosocial support. To ensure that schools are accessible for all we have provided assistive devices for those children with disabilities, provided menstrual hygiene kits for girls and provided economic support to those parents who cannot afford to meet their children’s educational needs.
Between April 2020 and March 2021 we worked with school communities across these three ‘clusters’ in Uganda and Kenya to benefit 29,373 children:
- In Kenya: this year we have focused on improving access to education through the construction of classrooms, latrine blocks and the provision of teaching and learning materials. This year we managed to improve access to and quality of education for 16,091 children.
- In Uganda: schools have remained closed since March 2020 as a result of the COVID-19 pandemic. We have therefore focused on ensuring that children were able to continue learning during this period through the provision of home learning packs, small group learning sessions in the community and radio sensitisation. In total we were able to reach 13,282 children through these interventions.
On 1[st] October 2020 Build Africa Kenya ceased to be a branch of Build Africa and all assets and liabilities were transferred to Build Africa Kenya as an independent partner of Build Arica.
## **Empowering parents to support their children’s education**
The Change the Story project, which we run in Kiryandongo and Oyam Districts in Uganda, entered its final year of implementation. The three-year project is funded by the UK Government’s Foreign, Commonwealth & Development Office. The project aims to help 2,243 young mothers to be better able to support their children's wellbeing and to play a more impactful role in their homes and communities by developing their life skills, including functional levels of literacy and numeracy. The project recognises that parents are the first educators of their children and ensures they can better support children’s development as well as their transition to primary school. The project will also work closely with 2,025 young fathers and community leaders to support the young mothers to access courses and become more involved in community life.
Between April 2020 and March 2021, we were able to support 2,021 young mothers with literacy, numeracy and life skill sessions in 40 mother care centres across the two districts. As a result of COVID-19 and the restrictions that the Government of Uganda imposed, we had to adapt these sessions and instead we provided small group sessions and provided home learning packs so the young mothers could continue learning throughout the lockdown period. Additionally, we were also able to enrol 1,326 male caregivers to attend sessions with their partners in order to challenge some of the traditional gendered norms that current exist in Uganda. This project has already had a significant effect and we are excited to see the overall impact that this project has after the project ends in August 2021.
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**BUILD AFRICA**
## **TRUSTEES REPORT AND ACCCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **Supporting parents to earn a living**
## **Farmers’ Network Project (“FNP”)**
This year we completed the third phase of the FNP and were able to begin implementing the final stage of the project in Nakuru county in Kenya. This project aims to support 1500 impoverished farmer to increase their income and food security. Across the project’s lifetime, we have been able to target 1500 farmers who have organised themselves into 10 registered community-based organisations (CBOs). These CBOs have chosen to focus on three major value chains: dairy farming, poultry farming and potato farming.
This was a particularly important project this year given the economic effects that the COVID-19 pandemic has had in Kenya. As a result of the savings groups that the farmers had previously established before the pandemic, they were able to access the savings when needed during the lockdown period. This prevented families being forced to undertake harmful coping mechanisms when they were in difficult situations, such as selling household assets. We also utilised the CBOs to help sensitise the community on the virus, the necessary prevention measures and the importance of the vaccination. We therefore helped to reduce the spread of the virus in the surrounding communities.
## **Future plans**
## **Build Africa Kenya**
Build Africa Kenya has had a very exciting year this year and thanks to support from the Street Child group and committed donors, they have been able to expand their operations to refugee response. Build Africa Kenya will be working to improve access to and quality of education in Kalobeyei refugee settlement, with a specific focus on providing Early Childhood Development Education. This is a really exciting development for Build Africa Kenya and allows them to demonstrate their expertise in a completely new setting.
Build Africa Kenya and Street Child continue to work closely together to ensure that children across Kenya are in school and learning.
## **Build Africa Uganda**
Since the merger took place, Street Child Uganda and Build Africa Uganda have become a combined entity that are using both organisation’s expertise to reach even more children across Uganda, in a more meaningful way. Together both organisations have improved access to education for 25,708 children across Uganda in both the development and humanitarian space.
We were also able to quickly adapt to the restrictions that were put in place during the COVID-19 pandemic and through this, we were able to reach 27,404 children with home learning support during the school closure period. This increased reach clearly highlights the strengthen of the two entities since the merger occurred.
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**BUILD AFRICA**
**TRUSTEES REPORT AND ACCCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **FUNDRAISING**
Our supporters are key to everything we do. Each year they enable us to ensure that no child is denied an education, every child in school gets the chance to learn and every child leaves school with the skills they need. At Build Africa, we are hugely grateful to all of our donors and focus on building long lasting relationships based on trust and respect. We are fully committed to being transparent and accountable about how our supporter’s donations are used.
Build Africa’s primary source of income is its amazing donor base who have continued to give generously in the year. We have also benefitted from Trust and Foundation income and the ongoing Change the Story Programme supported by the Foreign, Commonwealth & Development Office (formerly the Department for International Development).
Some major and long standing Build Africa donors have been in dialogue with Street Child about how their funds could be used to support projects in Uganda and Kenya in the ongoing projects in those countries operated by Street Child, and have made significant and generous gifts directly to Street Child during the year, which we are exceedingly grateful for. These donations have been included in the results of Street Child for the year ended 31 March 2021 (see Note 21 for how to contact Street Child).
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**BUILD AFRICA**
## **TRUSTEES REPORT AND ACCCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **TRUSTEE RESPONSIBILITIES**
## **How we manage our affairs**
Build Africa is a charitable company limited by guarantee, incorporated and registered in England and Wales under company number 2200793 and charity number 298316. Since becoming part of the Street Child Group, the Charity has been under the overall governance of the Group.
The Street Child Board meets at least four times a year and is responsible for the overall direction of the Charity and for core strategic policies, having regard to the advice of the Chief Executive. The Trustees delegate the day-to-day running of the charity to the Chief Executive.
## **Recruitment and appointment of Trustees**
The appointment of the Trustees is carried out having regard to the needs of the organisation, the suitability and skill of the candidate and by interview of interested parties.
## **Induction and training of new Trustees**
We make new Trustees aware of their legal obligations under charity law and company law. New Trustees are given the required training to enable them to undertake their roles and to ensure that they act in the best interests of the charity. When they are appointed they receive briefing and background information about the charity from senior management, including governance, finance and current strategies and plans. All Trustees have the opportunity to see our programmes at their own expense.
## **Fundraising standards and our approach to fundraising**
Street Child group employs a team a professional fundraisers, all of whom follow the best practice and legal requirements set out in The Code of Fundraising Practice, as well as those required under charity law and wider law. There was no reported failure to comply with The Code of Fundraising Practice. Outside of the team of professional fundraisers, Street Child’s volunteer fundraisers were all provided with relevant training or guidance notes including, where relevant, links to the necessary legal and best practices from the Institute of Fundraising. Agreed fundraising targets were monitored through reports provided by our online giving platforms and through regular communication and mentoring of volunteer fundraisers.
Street Child group commercial partners are all subject to agreeing a Commercial Participator’s Agreement that sets out the terms of the partnership including, but not limited to, payment plans, use of brand, inclusions/exclusions of the partnership and use of the agreed fundraising statement. Our data protection statement and marketing opt-ins were reviewed and updated to ensure only appropriate and relevant communications were sent to those supporters who had requested said information. Our electronic communications platform also offers the opportunity to opt out at every stage of mass communication.
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**BUILD AFRICA**
**TRUSTEES REPORT AND ACCCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
Street Child’s policy has never been to buy or sell supporter data or mailing lists. Our approach is to engage and inspire supporters through our events, through social media and other communications platforms and by our work.
## **Organisation and management**
Build Africa is based in the United Kingdom in London, with branches in Kenya (Build Africa Kenya) until 30[th] September 2020 and Uganda (Build Africa Uganda) where our projects are implemented.
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**BUILD AFRICA**
## **TRUSTEES REPORT AND ACCCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **FINANCES**
## **Review of 2020/21 financial position and fundraising activities**
During the 2020/21 financial year, Build Africa raised £840,658 (2020: £1,229,239) of income and had expenditure of £833,434 (2020: £1,576,803)
This resulted in a surplus of £1,273 for the year (2020: Loss of £365,874) after foreign exchange gains and losses.
In accordance with the charity SORP, support costs have been allocated between charitable activities and fundraising. Build Africa spent 85% (2020: 70%) of its total expenditure on charitable activities and 15% (2020: 30%) on fundraising.
The reduction in income was due to a fall in events income. £139,081 was earned from events in the prior year compared to none in the current year. Whilst events were curtailed due to COVID, the main reason for the fall is that all events are now run by Street Child. Income from Donations and Gifts also fell due to some major donors also transferring their gifts to Street Child, where work in Uganda and Kenya is being carried forwards.
At the same time Restricted expenditure on Charitable activities actually increased from £450,882 in the prior year to £593,511 in the current year, reflecting an increase in activity on certain grants such as Change the Story and Eburru cluster and despite other grants having ended last year and not having any expenditure in the current year.
Unrestricted expenditure on Charitable activities fell to £134,094 from a much higher figure of £653,323 in the prior year. The prior year figure included a one off additional depreciation charge for assets relating to projects that had finished in that year.
The position on Unrestricted reserves has improved from the prior year position, although they remain negative, closing with a negative balance of £210,709 (2020 balance negative £369,138). Restricted fund balances have also reduced from £490,035 to £332,879 which reflects the expected and natural ending of a number of grants during the year.
Build Africa are receiving ongoing support from Street Child in funding its Unrestricted Costs during the time when its reserves are negative and this support has been confirmed on an ongoing basis, for a period of at least one year from the approval of these financial statements.
## **Reserves Policy**
Reserves are assessed at both the whole the whole group and individual charity levels.
For Build Africa as a separate entity the reserves policy is to hold running costs of three months of running costs. At the date of signing the accounts Build Africa had one employee and no longer leased an office building, having moved into the Street Child offices. Running costs are mainly for direct fundraising and administration and lead to a target level of unrestricted reserves of £32k. Build Africa unrestricted reserves are considerably below this level at present at negative £210,710. In 2021/22, with a continuation of regular donor income and lower costs, unrestricted reserves will increase.
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**BUILD AFRICA**
## **TRUSTEES REPORT AND ACCCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
Street Child Group’s reserves policy is to maintain reserves within a range set with reference to key risks, and calibrated against the level of reserves that would be required to fund three to six months of operating costs.
The largest two risks facing Street Child are a fall or under-performance in Unrestricted income, and/or the need to use Unrestricted funds to cover Restricted Programme costs, for instance because of cost disallowed by the funders.
This quantification of reserves will be carried out on an annual basis as part of the budget setting process which concludes in March each year. At this stage the Trustees will consider if any of the major risks have changed, and also the quantification of the reserves in line with the budget.
For Street Child Group the reserves target is £0.5m to £1.5m, with a mid-range target of £1.0m. Street Child Group unrestricted reserves at 31 March 2021 of £1.3m were ahead of the mid-range target.
## **Risk management and internal control**
The Trustees are fully aware of the need to assess the risks faced by the charitable group and to minimise those risks. They have conducted a comprehensive process to identify, assess and manage risks. This culminates in a register of risks, with all risks being scored for likelihood and impact and management strategies and timetables being established. The risk register is reviewed by the Finance Committee every quarter and at every Board Meeting (also quarterly) to assess all risk factors identified in the risk register and ensure that all Trustees are fully abreast of the risk situation in the organisation.
In addition to the organisational risk register, each country programme holds a register for all large projects, which have their own risk registers that are used by project management teams to make operational decisions. All fundraising events have their own risk assessments.
While no system of internal control can provide absolute assurance against material misstatement or loss, Street Child Group’s systems have been developed to provide assurance to the Board that there are proper procedures in place and that they are operating effectively.
Key elements of the system of risk management and internal control include:
- Delegation: there is a clear organisational structure with lines of authority and responsibility for control; and procedures for reporting decisions, actions and issues.
- A clear, comprehensive documented suite of financial procedures accessible to all staff.
- Financial Reporting: the Board approves and monitors the annual budget and income projections. Each Board meeting receives an update on the latest forecast income and expenditure together with explanations of significant variations. The Finance Committee reviews the financial reports in detail and agrees any appropriate management actions; minutes from this Committee’s meetings are presented to the Board.
- Programme reporting: regular reports are received by the Chief Executive from the country leads. These are reviewed to ensure that the programmes are progressing as planned and to identify any issues which are followed up as necessary. Written quarterly updates are provided to the Board along with any issues, risks or opportunities.
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**BUILD AFRICA**
## **TRUSTEES REPORT AND ACCCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
The principal risks and uncertainties facing the charitable group, as identified by the Trustees of Street Child include the following:
- Unrestricted Income being insufficient to support institutional restricted funding or pursuing opportunities for investment. This is mitigated by careful monitoring of income compared to budget and forecast, and the pipeline income and by ensuring that costs are carefully managed. COVID-19 has increased the risk to income and we are working carefully to ensure that we have a balance portfolio of income sources to risk a direct shock to any one income stream.
- Unsatisfactory Programmes impact, or donors consider project impact to be unsatisfactory. Our ability to deliver against our planned impact faced a considerable risk of being hindered as communities and countries responded to COVID-19. Working closely with our donors, we explored what could be done to continue to work for improving access to and quality of education during the COVID emergencies. Looking further forward, we continue to invest in quality in-country programme and finance teams to ensure that we can meet donor requirements.
## **Trustees/Directors**
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
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**BUILD AFRICA**
## **TRUSTEES REPORT AND ACCCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **Statement of the Board of Trustee’ responsibilities for the financial statements**
The Trustees, who are also directors of Build Africa for the purpose of company law, are responsible for preparing the Trustees’ Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for the fifteen months period of financial activities and not approve the financial statements unless they are satisfied that the financial statements give a true and fair view of the state of the affairs of the Charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the year then ended.
In preparing those financial statements which give a true and fair view, the Trustees should follow best practice and:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards and statements of recommended practice 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 assume that the charitable company will continue on that basis.
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.
Each of the directors, who held office at the date of approval of this Trustees’ Report, has confirmed that there is no information of which they are aware which is relevant to the audit but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are made aware of such information.
On behalf of the Board of Trustees,
Gabriele Cipparrone, Trustee
> 23[rd] December
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**BUILD AFRICA**
**INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF BUILD AFRICA**
## **Auditor’s Report**
## **Opinion**
We have audited the financial statements of Build Africa (the ’charitable company’) for the year ended 31 March 2021 which comprise Statement of Financial Activities, Balance Sheet and Statement of Cash Flows 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 FRS 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 the parent charitable company’s affairs as at 31 March 2021 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 Companies Act 2006 and 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 charitable company 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 company'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 directors with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.
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
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**BUILD AFRICA**
**INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF BUILD AFRICA**
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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- trustees’ annual report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the 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 trustees’ annual report.
We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees’ Annual Report and from preparing a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 16, 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 and parent charitable company’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 group or parent charitable company or to cease operations, or have no realistic alternative but to do so.
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**BUILD AFRICA**
**INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF BUILD AFRICA**
## **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 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.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company. Our approach was as follows:
- We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, UK financial reporting standards as issued by the Financial Reporting Council and UK taxation legislation.
- We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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## **INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF BUILD AFRICA**
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and, in respect of the consolidated financial statements, to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which 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 any party other than the charitable company, the charitable company’s members, as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinion we have formed.
Neil Finlayson (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor
Devonshire House 60 Goswell Road London EC1M 7AD
Date:23[rd] December 2021
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## **BUILD AFRICA**
## **STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT**
|**FOR THE YEAR ENDED 31 MARCH 2021**
**Notes**
**Income from:**
Donations & Legacies
**2**
Other Trading Activities
**3**
Investment
**4**
**Total Income**
**Expenditure On:**
Raising funds
**5**
Charitable activities
**5**
**Total Expenditure**
**Net income/(expenditure)**
Foreign exchange loss
Transfers between funds
**Net income/(expenditure) for the year**
**and net movement in funds**
**Total funds brought forward**
**14**
**Total funds carried forward**
**14**|**Unrestricted**
**Funds**
**£**
405,290
-
-
405,290
105,829
134,094
239,923
165,367
(5,951)
(987)
158,429
(369,138)
(210,709)|**Restricted**
**Funds**
**£**
435,368
-
-
435,368
-
593,511
593,511
(158,143)
-
987
(157,156)
490,035
332,879|**Total**
**2021**
**£**
840,658
-
-
840,658
105,829
727,605
833,434
7,224
(5,951)
-
1,273
120,897
122,170|**Total**
**2020**
**£**
1,082,945
139,081
214|
|---|---|---|---|---|
|||||1,222,239|
|||||472,598
1,104,205|
|||||1,576,803|
|||||(354,564)
(11,310)
-
(365,874)|
|||||486,771|
|||||120,897|
All income and expenditure derive from continuing operations.
The statement of financial activities includes all gains and losses recognised in the year.
18
## **BUILD AFRICA**
## **BALANCE SHEET AS AT 31 MARCH 2021**
|**Notes**
**Fixed assets**
Tangible assets
**8**
**Current assets**
Debtors
**10**
Cash at bank and in hand
**Creditors: amounts falling**
**due within one year**
**11**
**Net current assets**
**Total assets less current liabilities**
**Income funds**
Restricted funds
**13**
Unrestricted funds
**16**|**£**
**£**
-
36,292
143,165
179,457
(57,287)
122,170
122,170
332,879
(210,709)
122,170
**2021**|**£**
**£**
10,555
91,903
312,313
404,216
(293,874)
110,342
120,897
490,035
(369,138)
120,897
**2020**|**£**
**£**
10,555
91,903
312,313
404,216
(293,874)
110,342
120,897
490,035
(369,138)
120,897
**2020**|
|---|---|---|---|
|||||
||||120,897|
||||490,035
(369,138)|
||||120,897|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and authorised for issue by the Board of Trustees on 23rd December 2021 and signed on their behalf by
Gabriele Cipparrone Trustee Company registration number 2200793
The accompanying notes form part of these accounts
19
## **BUILD AFRICA**
## **STATEMENT OF CASHFLOWS AS AT 31 MARCH 2021**
|**Net cash (outflow)/inflow from operating activities**
**Cash flows from Investing Activities**
Interest income
Purchase of fixed assets
Proceeds from the sale of tangible fixed assets
Foreign exchange loss
**Net cash used in investing activities**
**(Decrease)/Increase in cash and cash equivalents**
Cash and cash equivalents at the beginning of the period
**Cash and cash equivalents at the end of the period**|**2021**
**£**
(162,270)
-
(927)
-
(5,951)
(6,878)
(169,148)
312,313
**143,165**|**2020**
**£**
(55,203)
214
-
300
(11,310)|
|---|---|---|
|||(10,796)|
|||(65,999)
378,312|
|||**312,313**|
## **RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH INFLOW FROM OPERATING ACTIVITIES**
|**Net Movement in Funds**
Add back depreciation charge
Deduct interest income shown in investment activities
Loss/(Gains) on disposal of fixed assets
Losses on foreign exchange
Decrease in debtors
(Decrease)/Increase in creditors
**Net Cash outflow from operating activities**
Analysis of cash and cash equivalents and net debt
Opening balance
Cash-Flows
**Closing balance**|**2021**
**£**
1,273
934
-
10,548
5,951
55,611
(236,587)
(162,270)
**2021**
**£**
312,313
(169,148)
**143,165**|**2020**
**£**
(365,874)
87,974
(214)
(6,869)
18,179
85,879
125,722|
|---|---|---|
|||(55,203)|
|||**2020**
**£**
378,312
(65,999)|
|||**312,313**|
20
**BUILD AFRICA**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **1. ACCOUNTING POLICIES**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **a) Basis of preparation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102) including Update Bulletin 2), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Build Africa 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 note(s).
The Charity is a company limited by guarantee, incorporated in England and Wales (company number: 2200793) and a charity registered in England and Wales (charity number: 298316). The Charity’s registered office address is: 33 Creechurch Lane, London, EC3A 5EB.
## **b) Preparation of accounts on a going concern basis**
The Trustees recognise the risks associated with negative unrestricted reserves of £210,710 at 31 March 2021 and have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The Trustees have given due consideration for the effects of the Covid-19 outbreak, which occurred before these financial statements were signed. This assessment has also included a potential loss of income as a consequence of Covid-19.
The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements.
The charity entered the financial year 2020/21 with reserves of £120,897 and at 31 March 2020 had negative unrestricted reserves of £210,710. In assessing whether Build Africa is a going concern, the Trustees have also considered the reserves of the Street Child charitable group, of which the charity is a wholly owned subsidiary. The trustees have considered the group forecasts and projections and have taken account of pressures on donation and grant income and cash flow for 12 months from the date of approval of the financial statements, the associated assumptions that under-pin it, the pipeline of new income and the steps that could be taken to reduce expenditure should this be necessary and in particular any impact of Covid-19 within these areas.
Whilst the ultimate impact cannot be quantified, the Trustees are satisfied that the group has sufficient resources to continue in operational existence for the foreseeable future. The group is largely sheltered from the expected effects of the pandemic due to its loyal donor base and a significant grant pipeline, although some events have been curtailed as a result of the restriction on travel. Annual budgets have been revised taking this into account with prudent figures for both income and expenditure and the charity holds significant reserves and has liquid assets in the form of cash held in short term deposits.
The Trustees have concluded that with the reserves policy and cash liquidity requirements of the charity together with the commitment of support received from Street Child, the ultimate controlling party, there are no material uncertainties as to the charity’s ability to continue in operational existence for the foreseeable future.
The Trustees have received written assurance from the Board of Street Child that they will continue to provide financial support to Build Africa to enable it to meet its liabilities as they fall due for a period of twelve months from the date of approval of these financial statements and will not seek repayment of amounts owed to Street Child unless the charitable company’s cash flow permits this.
The charity therefore continues to adopt the going concern basis in preparing its financial statements.
## **c) Income**
All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably.
Legacies are recognised following probate and once there is sufficient evidence that receipt is probable and the amount of the legacy receivable can be measured reliably. Where entitlement to a legacy exits but there is uncertainty as to its receipt or the amount receivable, details are disclosed as a contingent asset until the criteria for income recognition are met.
## **d) Fund Accounting**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
## **e) Expenditure and irrecoverable VAT**
Unrestricted Funds are available to spend on activities that further any of the charitable objectives of the charity.
Restricted funds are donations which the donor has specified are to be spent on specific activities of the charity, often as set out in a funder project or grant agreement.
## **f) Allocation of overhead and support costs**
Overhead, support and governance costs are allocated between the cost of raising funds and charitable activities. Overhead, support and governance costs relating to charitable activities have been apportioned between activities.
Support costs represent the cost in all locations of providing support for the Charity’s programmes including management and technical support.
21
**BUILD AFRICA**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **g) Costs of raising funds**
The costs of generating funds consist of investment management fees and the costs of raising funds including an apportionment of overhead, support and governance costs.
## **h) Charitable activities**
Charitable activities are for improving the lives of children and young people in situations of conflict and poverty. We do this by working to support children’s education, learning and protection. Costs of charitable activities include grants payable and other costs directly associated with teacher training, school building, juvenile justice and an apportionment of overhead, support and governance costs.
## **i) Critical accounting estimates and areas of judgement**
In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.
## **(j) Tangible fixed assets and depreciation**
Tangible Fixed Assets costing more than £5,000 are capitalised. Depreciation is provided on tangible fixed assets at rates calculated to write off the cost on a straight line basis over their useful lives as follows:
Computer equipment and software 3 years Fixtures, fittings & equipment 5-8 years Motor vehicles 4 years Programme assets are not capitalised.
## **k) Leasing and hire purchase commitments**
Rentals payable under operating leases are charged to the Statement of Financial Activities on an accruals basis over the period of the lease.
## **l) Pensions**
The pension cost charged to the Statement of Financial Activities represents amounts payable by the Charity in the accounting period. The Charity contributes to employees’ personal pension plans which are part of the Charity’s group stakeholder scheme.
## **m) Employee benefits - short term benefits**
Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.
## **n) Employee termination benefits**
Termination benefits are accounted for on an accrual basis and in line with FRS 102.
## **2. DONATIONS AND LEGACIES**
|Donations and Gifts
Furlough Scheme
Legacies
Grants receivable
Gain on Disposal of Build Africa Kenya
**3. OTHER TRADING ACTIVITIES**
**2021**
Fundraising events
**2020**
Fundraising events
**4. INCOME FROM INVESTMENTS**
Interest receivable|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
2020
**£**
**£**
**£**
£
373,781
240,716
**614,497**
798,015
18,828
-
**18,828**
-
4,480
-
**4,480**
43,744
-
194,652
**194,652**
241,185
8,201
-
**8,201**
-|
|---|---|
||405,290
435,368
**840,658**
1,082,945|
||**Income**
**Associated**
**Net funds**
**generated**
**costs**
**generated**
**2021**
**£**
**£**
**£**
-
-
-
**Income**
**Associated**
**Net funds**
**generated**
**costs**
**generated**
**2020**
**£**
**£**
**£**
139,081
88,657
50,423
**2021**
2020
**£**
£
-
214|
22
## **BUILD AFRICA**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
|**5. EXPENDITURE**
**Cost of Raising Funds:**
Costs of generating voluntary income : Salary
Costs of generating voluntary income : Other Costs
Costs of activities to generate funds
Support Costs
**Total cost of raising funds**
**Cost of charitable activities:**
Direct Project Costs
Support Costs
**Total Charitable Activities**
**Total resources expended**|**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**2021**
**£**
**£**
**£**
84,480
-
84,480
15,251
-
15,251
-
-
-
6,098
-
6,098
**105,829**
**-**
**105,829**
**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**2021**
**£**
**£**
**£**
127,996
593,511
721,507
6,098
-
6,098
**134,094**
**593,511**
**727,605**
**239,924**
**593,511**
**833,434**|Total
2020
£
-
205,494
136,210
130,894|
|---|---|---|
|||472,598
Total
2020
£
945,824
158,381|
|||1,104,205
1,576,803|
Support costs are apportioned between fundraising and charitable activities based on staff time spent on these activities.
|**Governance costs**
Costs relating to Governance comprise:
Audit fees
Other costs|**2021**
**£**
16,777
-
16,777|2020
£
26,903
2,091|
|---|---|---|
|||28,994|
Audit fees include the statutory audit in the charity's countries of operation.
23
## **BUILD AFRICA**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **6. DIRECTORS**
None of the Directors/Trustees (or any persons connected with them) received remuneration during the year (2020: nil).
No Directors/Trustees were reimbursed for travel expenses incurred in attending Board meetings in 2021 (2020:£ 899), and no Director/Trustee was reimbursed for expenses for overseas visits to programmes in Kenya and Uganda (2020: £1,179)
## **7. STAFF COSTS**
## **Number of employees**
The average monthly number of employees during the year was:
|**Number of employees**
The average monthly number of employees during the year was:||
|---|---|
|Programmes/charitable activities
Fundraising and communications
Management and Administration
**Employment costs**
Wages and salaries
National Insurance
Pensions
Redundancy and termination payments|**2021**
2020
7
14
2
4
2
10|
||11
28|
||**2021**
2020
**£**
£
150,187
560,223
9,528
31,417
4,693
27,005
6,295
23,364|
||170,702
642,008|
The total employee benefits of the key management personnel were £nil (2020: £247,966). Of this, £nil (2020: £77,521) relates to key management personnel of Build Africa UK.
No employee received remuneration of £60,000 or more.
24
## **BUILD AFRICA**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **8. TANGIBLE FIXED ASSETS**
|**Group**
**Cost**
At 1 April 2020
Additions
Disposals and scrapped assets
**At 31 MARCH 2021**
**Depreciation**
At 1 April 2020
Charge for the year
Disposals and scrapped assets
**At 31 MARCH 2021**
**Net book value**
**At 31 MARCH 2021**
At 31 March 2020|**Motor**
**Computer**
**Fixtures, fittings**
**Total**
**Vehicles**
**Equipment**
**& leasehold**
**improvements**
**£**
**£**
**£**
**£**
238,968
191,307
100,394
530,669
-
927
-
927
(238,968)
(192,234)
(100,394)
(531,596)|
|---|---|
||-
-
-
-
232,538
188,425
99,151
520,114
446
488
934
(232,538)
(188,871)
(99,639)
(521,048)|
||-
-
-
-
-
-
-
-|
||6,430
2,882
1,243
10,555|
Due to the Build Africa Kenya Branch leaving Build Africa all assets have been transferred to a third party.
## **9. OVERSEAS ORGANISATIONS**
In order to operate in Kenya and Uganda, Build Africa is required by local legislation to establish 100% controlled locally registered organisations. These organisations are treated as branches of Build Africa and their accounts are included within the accounts of Build Africa. On 30th September 2020 Build Africa entered into an arrangement with Build Africa Kenya to change its status to an external funding partner, and at that date it ceased to be part of Build Africa. Build Africa Kenya it has been included in these financial statements as a branch from 1st April 2020 to 30th September 2020 and at which point it was disposed of and all assets and liabilities of the branch were transferred to a third party. Build Africa have continued to work with Build Africa Kenya as a partner organisation from 1st October 2020.
|**Income and endowments from:**
Donations and legacies
Other trading activities
**Total income**
**Expenditure on**
Charitable activities
**Total Resources Expended**
**Net income/expenditure before gains/losses on foreign**
**exchange**
Foreign exchange gain/(loss)
Asset Revaluation
**Fund balances at 1 April 2020**
**Fund balances at 30th September 2020 for Build Africa**
**Kenya, at 31 March 2021 for Build Africa Uganda**
The assets and liabilities of the entities were:
Assets
Liabilities
Total net assets
Restricted funds
Aggregate reserves|**2021**
2020
**£**
£
256,884
264,019
-
-
256,884
264,019
256,406
272,570
256,406
272,570
478
(8,551)
508
(12,938)
986
(21,489)
-
-
(8,746)
12,743
(7,760)
(8,746)
**2021**
2020
£
£
169,040
97,407
(176,800)
(106,153)
(7,760)
(8,746)
(7,760)
(8,746)
(7,760)
(8,746)
**Build Africa Kenya**
**Build Africa Kenya**|**2021**
2020
**£**
£
174,340
354,562
52,339
28,889
**Build Africa Uganda**|
|---|---|---|
|||226,679
383,451|
|||226,679
383,451|
|||226,679
383,451
-
-
28,991
(315)|
|||28,991
(315)
-
(52,618)
58,789
111,722|
|||87,780
58,789|
|||**2021**
2020
£
£
91,250
164,758
(3,470)
(105,968)
**Build Africa Uganda**|
|||87,780
58,789|
|||87,780
58,789|
|||87,780
58,789|
25
## **BUILD AFRICA**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
|**10. DEBTORS**
Accrued income
Prepayments and other debtors
**11. CREDITORS: amounts falling due within one year**
Intercompany with Lessons for Life
Intercompany with Street Child
Trade creditors
Deferred income
Accruals & other creditors
Taxes and social security costs
**12. ANALYSIS OF DEFERRED INCOME**
Balance at beginning of year
Amount released to income in the year
Amount deferred in the year
Balance at end of the year|**2021**
2020
**£**
£
33,169
76,340
3,123
15,564|
|---|---|
||36,292
91,903|
||**2021**
2020
**£**
£
22,024
136,546
9,860
-
8,865
79,375
-
53,689
16,538
24,057
-
207|
||57,287
293,874|
||**2021**
2020
**£**
£
53,689
-
(53,689)
-
-
53,689|
||-
53,689|
26
**BUILD AFRICA**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **13. RESTRICTED FUNDS**
|**Projects in Uganda**
NGORA Cluster
BUKEDEA Cluster
MASINDI Cluster
CTS (MRKS)
Maximising Early Years (MEY)
SWESWE/ Kyaka Classrooms
MENSTRUAL HYGIENE MANAGEMENT
**Total for Uganda Projects**
**Projects in Kenya**
EBURRU Cluster
ARISE
Medicor : Quality Education
Farmers Network Project
Mariosoni
Elburgon (Kapsita)
**Total for Kenya Projects**
COVID response
Projects in Uganda
NGORA Cluster
STEPS
UNICEF
BUKEDEA Cluster
MASINDI Cluster
CTS (MRKS)
ILEAP4
MEY
SWESWE
MENSTRUAL HYGIENE MANAGEMENT
Projects in Kenya
FNP 2
EBURRU Cluster
GITARE Cluster
HESHIMA
ARISE
ELBUR
FNP3|**As at**
**As at**
**1 April**
**Income**
**Expenditure**
**Transfer**
**31 March**
**2020**
**between funds**
**2021**
**£**
**£**
**£**
**£**
**£**
13,862
-
(17,986)
4,124
-
117,220
6,576
(37,954)
85,843
82,938
34,340
(61,087)
(4,124)
52,066
(4,649)
194,652
(129,855)
60,148
81,321
-
(81,321)
-
60,000
-
-
60,000
2,155
-
(2,376)
221
-|
|---|---|
||352,847
235,568
(330,578)
221
258,057
160,834
-
(125,478)
35,356
(766)
31,414
(31,414)
766
-
-
50,000
(17,773)
-
32,227
(22,879)
96,144
(38,759)
(26,668)
7,838
-
1,190
-
-
1,190
-
18,128
(44,796)
26,668
-|
||137,188
196,876
(258,220)
766
76,610
-
2,924
(4,712)
(1,788)|
||490,035
435,368
(593,511)
987
332,878|
||**As at**
**As at**
**1 April**
**Income**
**Expenditure**
**Transfer**
**31 March**
**2019**
**between funds**
**2020**
**£**
**£**
**£**
**£**
**£**
18,911
-
(5,049)
-
13,862
5,829
-
(13,329)
7,500
-
(11,623)
20,932
(9,308)
-
-
56,901
109,624
(42,729)
-
123,796
109,437
9,605
(36,104)
-
82,938
9,545
49,530
(63,724)
(4,649)
-
29,860
(60,032)
23,596
(6,576)
107,698
-
(26,377)
-
81,321
-
60,000
-
-
60,000
-
2,155
-
-
2,155
65,656
-
(62,012)
(3,644)
-
92,213
164,182
(94,303)
-
162,092
8,557
-
-
(8,557)
-
2,584
-
-
(2,584)
-
-
9,368
(10,134)
-
(766)
-
-
(1,258)
-
(1,258)
-
-
(26,523)
3,644
(22,879)|
||465,708
455,254
(450,882)
19,955
490,035|
## **Explanation of Restricted Funds**
Transfers from Unrestricted funds into Restricted funds represent Street Child Group Unrestricted funds being applied to Restricted grants Transfers from Restricted funds into Restricted funds represent small balances moved for completed grants into Unrestricted funds. Funds with negative balances at 31 March 2020 are ongoing grants reimbursed in arrears by the funder and income has been received after the year end.
Transfers between funds represent project funded by one donor where there is flexibility as to where the funds are allocated between projects.
**Ngora Cluster:** All Cluster models work in eight schools in the geographic areas specified. They aim to transform education for every child and are tailored to every school based on extensive situation analysis, including enrolment data and infrastructural assessment. The project works in communities, engaging parents in VSLAs so they are able to afford their children’s schooling. It transforms the educational environment through a complete renovation of learning and WASH facilities, as well as providing learning resources to inspire and stimulate children. Finally, it trains teachers in best practice, to raise the quality of education for every child.
**STEPS:** The project trains teachers in best practice, translates learning materials in to local languages and sets up Buddy Clubs and Parents Clubs to give children emotional and learning support outside of their classes. It is the same model as ILEAP. Between them, STEPS and EQUAL work in twenty schools in the Masindi area of Uganda.
**UNICEF** have been funding Build Africa to run a programme of work in 60 schools. This trains head teachers and local government officials in how to collect and present school performance data. This skill is vital to enable policy decisions to be made on an evidenced basis. Teachers and local officials are also trained in how to interpret findings and use them to improve performance.
27
**BUILD AFRICA**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
**Bukedea Cluster:** All Cluster models work in eight schools in the geographic areas specified. They aim to transform education for every child and are tailored to every school based on extensive situation analysis, including enrolment data and infrastructural assessment. The project works in communities, engaging parents in VSLAs so they are able to afford their children’s schooling. It transforms the educational environment through a complete renovation of learning and WASH facilities, as well as providing learning resources to inspire and stimulate children. Finally, it trains teachers in best practice, to raise the quality of education for every child.
**Masinidi Cluster:** All Cluster models work in eight schools in the geographic areas specified. They aim to transform education for every child and are tailored to every school based on extensive situation analysis, including enrolment data and infrastructural assessment. The project works in communities, engaging parents in VSLAs so they are able to afford their children’s schooling. It transforms the educational environment through a complete renovation of learning and WASH facilities, as well as providing learning resources to inspire and stimulate children. Finally, it trains teachers in best practice, to raise the quality of education for every child.
**Mum's Read (Change the Story)** : Working in 40 communities in Oyam and Kiryandongo in Uganda the project will reach over 2,000 young mums. It will equip them with literacy, numeracy, childcare and life skills to promote their own and their children’s wellbeing. A parallel programme will engage community leaders and male care givers to empower them to meaningfully include women.
**ILEAP:** Funded by the Big Lottery Fund, this project works in 40 schools in Uganda to enhance literacy and numeracy in the earliest years of primary school. The project trains teachers in best practice, translates learning materials in to local languages and sets up Buddy Clubs and Parents Clubs to give children emotional and learning support outside of their classes.
**FNP (Farmers Network Project):** An extension of the first phase of Farmers Network Project, this project enhances the systematic nature of the agricultural training, differentiating between cash crops and food crops. A more holistic programme, the project aims to have a continued positive impact on economic security, business investment and agricultural skills. It will also help household budgeting skills, time and labour management and equip parents with the skills to nurture their children’s learning in the home.
**EQUAL:** The project trains teachers in best practice, translates learning materials in to local languages and sets up Buddy Clubs and Parents Clubs to give children emotional and learning support outside of their classes. It is the same model as ILEAP. Between them, STEPS and EQUAL work in twenty schools in the Masindi area of Uganda.
**Eburru Cluster:** All Cluster models work in eight schools in the geographic areas specified. They aim to transform education for every child and are tailored to every school based on extensive situation analysis, including enrolment data and infrastructural assessment. The project works in communities, engaging parents in VSLAs so they are able to afford their children’s schooling. It transforms the educational environment through a complete renovation of learning and WASH facilities, as well as providing learning resources to inspire and stimulate children. Finally, it trains teachers in best practice, to raise the quality of education for every child.
**Heshima:** Aimed to enhance the access of education for adolescent girls, the Heshima (Dignity) Project worked in four schools in Kwale County, Kenya. It provided schools with the water and sanitation facilities to accommodate girls’ menstrual health management as well as training for children and school boards of management in how to manage facilities and reducing stigma around menstruation.
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## **BUILD AFRICA**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **14. RESERVES SUMMARY**
|**2021**
Unrestricted
Restricted
Total Reserves
**2020**
Unrestricted
Restricted
Total Reserves|**As at**
**Foreign**
**As at**
**1 April**
**Exchange**
**Transfers**
**31 March**
**2020**
**Income Expenditure**
**Movement**
**between funds**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
(369,138)
405,290
(239,923)
(5,951)
(987)
(210,709)
490,035
435,368
(593,511)
-
987
332,879|
|---|---|
||120,897
840,658
(833,434)
(5,951)
-
122,170|
||**As at**
**Foreign**
**As at**
**1 April**
**Exchange**
**Transfers**
**31 March**
**2019**
**Income Expenditure**
**Movement**
**between funds**
**2020**
**£**
**£**
**£**
**£**
**£**
**£**
21,063
766,985
(1,125,921)
(11,310)
(19,955)
(369,138)
465,708
455,254
(450,882)
-
19,955
490,035|
||486,771
1,222,238
(1,576,802)
(11,310)
-
120,897|
## **15. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|**2021**
Net Current Assets
**2020**
Tangible fixed assets
Net Current Assets
**16. COMMITMENTS UNDER OPERATING LEASES**
The charity had commitments under non-cancellable operating leases
as follows:
Expiry date:
Within 1 year
Between 1 and 5 years|**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**£**
**£**
**£**
(210,709)
332,879
122,170|**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**£**
**£**
**£**
(210,709)
332,879
122,170|
|---|---|---|
||(210,709)
332,879
122,170||
||**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**£**
**£**
**£**
10,555
-
10,555
(379,693)
490,035
110,342||
||(369,138)
490,035
120,897||
|||**2021**
2020
**£**
£
-
5,628
-
-|
|||-
5,628|
The commitment represents the rent of the charity's office in Nairobi.
## **17. RELATED PARTY TRANSACTIONS**
On 12th September 2019 Build Africa was acquired by Street Child. On this date Street Child became a Trustee of Build Africa. Included in Creditors is an amount owed to Street Child of £9,860 (2020: £76,982). At 31 March 2021 Build Africa owed the following amounts to charities who are controlled by Street Child: Children in Crisis £nil (2020:£36,999) and Lessons for Life Foundation £22,564 (2020: £22,564)
## **18. CAPITAL COMMITMENTS**
There were no capital commitments not provided for in the financial statements (2020: none).
## **19. ULTIMATE PARENT COMPANY**
The company is a subsidiary of Street Child, a charitable company registered in England and Wales (Company No. 06749574, Charity No. 1128536). Copies of group financial statements are available from the registered office of the parent at:
33 Creechurch Lane, London. EC3A 5EB
30