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2021-12-31-accounts

Charity registration number 328273

Company registration number 02394988 (England and Wales)

FOOD FOR THE HUNGRY UK

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

FOOD FOR THE HUNGRY UK

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mr S P Herbert Mr S Canham Mr M Josten Mr M A Viso R Kayombo (Appointed 24 June 2021)

Secretary Mr S Canham Charity number 328273 Company number 02394988 Registered office 15 Palace Street NORWICH Norfolk United Kingdom NR3 1RT Independent examiner Argents Accountants Limited 15 Palace Street NORWICH Norfolk United Kingdom NR3 1RT

FOOD FOR THE HUNGRY UK

CONTENTS

Page
Trustees' report 1 - 8
Independent examiner's report 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 25

FOOD FOR THE HUNGRY UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees , who are also directors of the charity present their report and financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Deed of Trust , the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

Food for the Hungry (FH-UK) is a Christian organisation committed to working with poor people to overcome hunger and poverty. It does so as part of a family of autonomous national Food for the Hungry organisations. These collaborate and channel their support through a single international implementation arm to Field Offices in over 19 of the world's poorest countries.

FH-UK seeks to create public benefit and to share the love of Christ by raising funds for FH work overseas and through informing and engaging people in the UK in the causes of physical and spiritual hunger and poverty, sharing its vision of community and the appropriate Christian responses to all forms of poverty.

FH-UK continues to facilitate the visit of teams from this country to FH field locations. Teams number 2-15 people, and are generally of approximately 1-2 weeks duration.

FH-UK also seeks to create public benefit by raising funds to support the work of individuals who are prepared to live among the poorest communities overseas where their skills provide significant benefit to the local population. Overseas staff are engaged in raising financial support to cover their secondment costs from churches and from family and friends, with the assistance and facilitation of FH-UK.

FH-UK and FH conduct their programmes without discrimination by politics, religion, disability or gender.

FH-UK maintains contact with other British Non-Governmental Development Organisations through membership of BOND (the British Overseas NGOs in Development). We are also members of Global Connections and Restored, a UK based organisation addressing issues of violence against women.

Main specific objectives for the year included

Public benefit

The trustees have complied with their duty to have due regard to the Charities Commission's public benefit guidance when exercising any powers or duties to which the guidance is relevant.

FOOD FOR THE HUNGRY UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Staff and Volunteers

The charity has one part time employee who assists in the securing of grants from trusts and governmental sources. The roles carried out in 2021 by our volunteers and the approximate percentage of a full-time position these represent are as follows:

  1. CEO 100%

  2. Program Manager 100%

  3. Project Manager 40%

  4. Book keeper 30%

  5. Child Sponsorship communications 60%

Strategic report

The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the trustees to present a strategic report.

Achievements and performance

COVID-19

The implications of COVID-19 have been far-reaching. To respond to these challenges, FH-UK (following the lead of FHA) has adjusted its programmes based on the four pillars listed below: Pillar 1 – Adapting existing programming to ensure staff and community safety. Pillar 2 – Providing essential life-saving services wherever necessary. Pillar 3 – Active reduction of the spread of COVID-19 Pillar 4 – Early recovery.

With the emergence of effective COVID-19 vaccines, FH-UK is using its best efforts to ensure an equitable distribution of these vaccines to the most vulnerable in the areas where we work.

Within the UK, fund-raising has affected a number of planned events but this has been offset by an increase in donations overall. The UK Government reduced funding for the financial year 2021 for international development in general, which affected our UK Aid projects. All FH-UK staff have been able to adapt to remote working, although it has not been possible to make any field visits or to organise any team visits in 2021.

Overall, COVID-19 has not to date, materially affected our financial or administrative support base in the UK and we have generally been able to adapt our field programmes to take account of its impact. We hope that the impact of COVID19 will progressively decrease in the future but we will continue to monitor and assess any further impacts in 2022.

FOOD FOR THE HUNGRY UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Field Activities:

In 2018 FH-UK secured a multi-year grant government grant from FCDO’s Aid Direct fund in respect of a food security and nutrition project in Namutumba in Uganda. A further project was secured in 2019 in respect of increasing pastoralists’ income in Northern Kenya.

The expected level of funding for both projects was reduced by the FCDO in the aftermath of COVID-19. Both projects were adapted and have now been successfully delivered and the final reports submitted to FCDO. The project’s objectives were met and favourable ratings received from the FCDO in their final project appraisals.

The long-term sponsorship of the Buuri Cluster Community in Kenya continued to progress well during the year. It has been agreed to expand the scope of this project and plans have been put in place to provide the additional funding required. This project continues to benefit from significant support from the SDL Foundation, for which we are extremely grateful.

FH-UK continues to support the activities of FH Bangladesh in delivering their Family and Community Transformation programme. This programme is run in particularly vulnerable and disadvantaged communities where women are deprived and mistreated. The primary tool within this programme is running local learning and savings groups. helping to empower 12-20 women to realise their potential and, through economic development, lift their families out of poverty.

Mwumba is one of the poorest communities in northern Burundi and FH-UK has been supporting a long-term small-scale development project there since 2010. Following a full strategic review of the project in 2018, it was agreed to substantially increase the support to this community from 2019 onwards. Since then there has been a significant increase in the scale of the project and the financial commitment required to underpin this. Increasing the scale of the project delivers greater economies of scale and improves the efficiency of the resources employed, enabling our programme to have an impact on a significant proportion of the community. The aim is that the whole community can graduate to a self-sustaining position within about 5 years.

Overseas Staff:

Tom MacGregor continued his multi-year assignment in Rwanda. Tom has established a marketing company called Azizi Life, selling a number of successful product lines to customers overseas, and is assisting in developing the local tourist industry. FH-UK has secured donor support to fund an expansion of Azizi Life’s facilities in Rwanda which is expected to be completed during 2022. Costs for seconded international staff (SIS) are covered by designated income. This designated income covers their personal allowance plus a contribution to UK administration and in all cases is also sufficient to provide a fund for contingencies and home visit costs.

Team Visits:

There were no team visits during the year due to the impact of COVID-19

Staff:

Mr Paul Cornelius continued to hold the position of Chief Executive, Food for the Hungry UK during 2021. Mr Cornelius has significant experience of leadership positions in business as well as being an active Christian within his local community. Mr Cornelius is standing down as CEO at the end of December 2021 and will be succeeded by Mr Ian Johnson.

In addition, the charity benefits from the support of a number of part-time or full-time volunteers who are involved in the UK administration of Child Development Programmes, the organisation of team visits, applications for grants from Governments and Trusts and the day-to-day management of the Charity's finances. A consultant continued to be contracted during 2021, supported by a part-time employee, to help with applications to Trusts and Foundations and governmental sources of funding.

FOOD FOR THE HUNGRY UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Fundraising activities:

Income increased in 2021 by 21% to £936,515 from £775,038 in 2020 The increase was primarily due to higher levels of non-governmental grants and grants from businesses.

During the year the supporters who gave to the charity, either by standing order or direct debit, provided an average monthly contribution of £8730 (excluding Gift Aid), compared to £8706 (excluding Gift Aid) in 2020).

The income received in support of major projects is as set out below.

£149,552 of grant funding was received in respect of the grants awarded to Food for the Hungry UK from the UK Government (FCDO) from their UK Aid Direct Community Partnership Fund. Funds are claimed from FCDO and spent in the UK or remitted to partners based on detailed expenditure forecasts. Any over- or under-spends are then settled the following quarter when actual expenditure is reported and reviewed. Receipts and funds remitted/other expenditure relating to these grants for the year were as follows:

Uganda
UK Aid Direct
9SG6-M6ZC-PR		 Uganda
UK Aid Direct
9SG6-M6ZC-PR		 Uganda
UK Aid Direct
9SG6-M6ZC-PR		 Uganda
UK Aid Direct
9SG6-M6ZC-PR		 Kenya
UK Aid Direct
PDSH-R37X-YV		 Kenya
UK Aid Direct
PDSH-R37X-YV		 Kenya
UK Aid Direct
PDSH-R37X-YV
£ £
Grant received from FCDO 84,380 65,172
Expenditure by FH-UK - -
Funds remitted to FH-UK partner 105,995 78,362
Under-/(over-) spend of funds (21,615) (13,190 )

Financial review

At the year ended 31 December 2021 the Charity's reserves stood at £104,810. This figure is considered consistent with meeting the objectives set out by the trustees above.

The results of the company for the year ended 31 December 2021 are set out in the attached financial statements drafted in accordance with the Companies Acts. The trustees of the charity consider the results for the year to be positive as they represent an increase in the level of funds raised and expenditure on projects compared with 2020.

FOOD FOR THE HUNGRY UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Reserve policy

Generally the trustees do not seek to hold large reserves. Historically the trustees have considered it prudent to retain sufficient reserves to enable the charity to operate for 1-2 years on regular but lower levels of income. In addition the trustees hold additional reserves to fund new income raising opportunities and to manage short-term fluctuations in the funding of individual projects. This policy was maintained in 2021 based on the Charity's current administrative cost base.

At 31st December 2021 the Charity's reserves stood at £104,810 This figure is considered consistent with meeting the objectives set out by the trustees above.

The results of the company for the year ended 31st December 2021 are set out in the attached financial statements drafted in accordance with the Companies Acts. The trustees of the charity consider the results for the year to be positive as they represent an increase in the level of funds raised and expenditure on projects compared with 2020.

There are no investments of the company, other than savings and deposit accounts that provide ready access to the funds. The policy of the company is:

  1. Monies must not be invested in any instrument where ethical or reputational issues are contrary to the values of FH-UK or FH.

  2. The principal or capital amounts invested must not be at risk.

Risk management

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Risk Management Policy: a comprehensive review of risks is undertaken by the Finance and Risk SubCommittee and documented in a Risk Register. This register also identifies key risks to be managed together with a Risk Mitigation Action plan. It was reviewed twice by the Board of Trustees during 2021.

Key risks that have been identified include:

Employer's Liability, Public Liability and Legal Expenses have been insured under a Charity Connect policy with Ansvar.

FOOD FOR THE HUNGRY UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Plans for future periods

The Board of FH-UK has determined that the following will be the principal ways that FH-UK will aim to create public benefit:

For 2022 the key areas of focus will be:

  1. Develop a new strategy for FHUK which will be compatible with the organisation-wide strategy review being carried out by FHA. The FHA strategy review is underway and is due to be completed in the first half of 2022.

  2. Maintaining and developing our relationship with GOAC, Faroe Islands and establishing a relationship with JOAC

  3. Being ready to apply for further grants if applications for new programmes are invited by the FCDO.

  4. Identifying and securing new sources of project funding

  5. Supporting and expanding the scope of the programme with communities in the region of Mwumba in Burundi and the Buuri cluster of communities in Kenya.

  6. Maintaining an effective response to the challenges presented by the Covid-19 pandemic.

Structure, governance and management

The charity is controlled by its governing document, a Deed of Trust, and constitutes a Limited Company, limited by guarantee, as defined by the Companies Act 2006.

FOOD FOR THE HUNGRY UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr N M Bicknell

(Resigned 28 October 2021)

Mr S P Herbert Mr S Canham Mr M Josten Mr M A Viso R Kayombo (Appointed 24 June 2021)

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.

FH-UK has a board of trustees that meet a minimum of three times a year, one of those meetings being the Annual General Meeting. All directors of the company are also trustees of the charity. The Board has the power to appoint additional trustees as it considers fit. The number of trustees is not subject to any maximum, but may not be less than three.

In 2015 the Board of Trustees established the Finance and Risk Sub-Committee whose remit is to review and report back to the Board of Trustees on the Financial controls of the charity, longer term financial projections for the charity and the management of risk.

The experience and skill base of the current five trustees covers the following: Board membership for up to 20 years including one past or current member of the international executive team of FH, FH international Field Office experience, FH international Financial Management, preparing and leading teams to the Field, organisational development, planning and management.

The trustees continue to review all strategic and organisational development plans and key operational decisions presented to them by the Chief Executive.

In 2021 there was one part-time salaried employee whose role is to make grant applications on behalf of the Charity. Mr Paul Cornelius (Chief Executive) and a number of part-time or full-time volunteers provide support to FH-UK on an unpaid basis.

The responsibility of the Chief Executive and other volunteers is to execute the strategic plan agreed with the Board of Trustees. The principal purpose of FH-UK is to stimulate British support in the form of funds, people and prayer for the operation of FH's international relief and development activities.

Wider network

Links with Food for the Hungry Association (FH):

FH, a not-for-profit association incorporated in Geneva Switzerland, maintains programmes in over 19 of the world's poorest countries, with international field staff numbering about 3000, mostly locally employed. FH-UK, together with FH and each of the other nationally based organisations, has chosen to affiliate to an international covenant of common vision, principles and systems of working together.

Centred in and motivated by Christ, the international covenant of Food for the Hungry organisations is committed to working with poor people to overcome both physical and spiritual hunger and poverty worldwide. The primary emphasis is on long-term development among the extremely poor, recognising their dignity, creativity and ability to solve their own problems.

In 2021 Mark Viso served on the Board of FH-UK. Mark is the President and CEO of FHA. In June 2022 Rudo Kayombo joined the Board of FHUK. Rudo is the Chief Operating Officer of FHA.

FOOD FOR THE HUNGRY UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees' r eport, including the strategic report, was approved by the Board of Trustees.

Mr S Canham

Trustee

27 April 2022

FOOD FOR THE HUNGRY UK

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FOOD FOR THE HUNGRY UK

I report to the trustees on my examination of the financial statements of Food For The Hungry UK (the charity) for the year ended 31 December 2021.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Mark Johnstone FCA

Argents Accountants Limited 15 Palace Street NORWICH Norfolk NR3 1RT United Kingdom

Dated: 27 April 2022

FOOD FOR THE HUNGRY UK

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
38,628
896,289
Charitable activities
4
1,500
-
Investments
5
98
-
Total income
40,226
896,289
Expenditure on:
Raising funds
6
32,383
-
Charitable activities
7
3,383
931,314
Total expenditure
35,766
931,314
Net incoming/(outgoing)
resources before transfers
4,460
(35,025)
Gross transfers
between funds
(35,025)
35,025
Net (expenditure)/income
for the year/
Net movement in funds
(30,565)
-
Fund balances at 1 January
2021
135,375
-
Fund balances at 31
December 2021
104,810
-		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
934,917
43,121
730,812
1,500
-
-
98
1,105
-
936,515
44,226
730,812
32,383
22,978
-
934,697
4,716
733,042
967,080
27,694
733,042
(30,565)
16,532
(2,230)
-
(2,230)
2,230
(30,565)
14,302
-
135,375
121,073
-
104,810
135,375
-		 Total
2020
£
773,933
-
1,105
775,038
22,978
737,758
760,736
14,302
-
14,302
121,073
135,375

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

FOOD FOR THE HUNGRY UK

BALANCE SHEET

AS AT 31 DECEMBER 2021

2021
Notes
£
Fixed assets
Tangible assets
14
Current assets
Debtors
15
9,945
Cash at bank and in hand
548,179
558,124
Creditors: amounts falling due within
one year
16
(453,415)
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2020
£
£
101
15,834
676,380
692,214
(556,982)
104,709
104,810
104,810
104,810		 £
143
135,232
135,375
135,375
135,375

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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 by the Trustees on 27 April 2022

Mr S Canham Trustee

Company registration number 02394988

FOOD FOR THE HUNGRY UK

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
19
Investing activities
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
£
(128,299)
98
98
-
(128,201)
676,380
548,179		 2020
£
1,105		 £
126,687
1,105
-
127,792
548,588
676,380

FOOD FOR THE HUNGRY UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Food For The Hungry UK is a private company limited by guarantee incorporated in England and Wales. The registered office is 15 Palace Street, NORWICH, Norfolk, NR3 1RT, United Kingdom.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

FOOD FOR THE HUNGRY UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Charitable expenditure comprises grants made to fund the overseas work of FH as well as the costs incurred by the charity in making the grants, recruiting and sending appropriate people to assist where needed and informing people in the UK about the causes of physical and spiritual hunger and poverty, and about appropriate Christian responses.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers

30% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

FOOD FOR THE HUNGRY UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

1.10 Taxation

The charity is exempt from corporation tax on its charitable activities.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Foreign exchange

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

FOOD FOR THE HUNGRY UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

3 Donations and legacies

Unrestricted
Restricted
funds
funds
general
2021
2021
£
£
Donations and gifts
38,628
365,312
Legacies receivable
-
23,474
Project Support Grants
-
507,503
38,628
896,289		 TotalUnrestricted
Restricted
funds
funds
general
2021
2020
2020
£
£
£
403,940
40,054
329,371
23,474
-
-
507,503
3,067
401,441
934,917
43,121
730,812		 Total
2020
£
369,425
-
404,508
773,933

Restricted funds general Project Support Grants includes FCDO grants received in the year totalling £149,552. (see FCDO Grant note).

4 Charitable activities

Other income

Core Core
activities activities
2021 2020
£ £
1,500 -

5 Investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 98 1,105

FOOD FOR THE HUNGRY UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

6 Raising funds

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Fundraising and publicity
Fundraising consultancy 8,500 9,220
Advertising 895 1,536
Staff costs 13,181 3,246
Support costs 9,807 8,976
Fundraising and publicity 32,383 22,978
32,383 22,978

FOOD FOR THE HUNGRY UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

7 Charitable activities

Travel and motor expenses
Meeting expenses
Bank charges
Grant funding of activities (see note 9)
Share of support costs (see note 11)
Analysis by fund
Unrestricted funds
Restricted funds - general		 FH
2021
£
-
-
2,051
2,051
909,819
-
911,870
2,051
909,819
911,870		 SIS
2021
£
-
-
-
-
21,495
1,082
22,577
1,082
21,495
22,577		 Visits
2021
£
200
50
-
250
-
-
250
250
-
250		 Total
2021
£
200
50
2,051
2,301
931,314
1,082
934,697
3,383
931,314
934,697		 FH
2020
£
-
-
1,778
1,778
708,271
-
710,049
1,778
708,271
710,049		 SIS
2020
£
-
-
-
-
24,771
1,065
25,836
1,065
24,771
25,836		 Visits
2020
£
1,684
189
-
1,873
-
-
1,873
1,873
-
1,873		 Total
2020
£
1,684
189
1,778
3,651
733,042
1,065
737,758
4,716
733,042
737,758

FOOD FOR THE HUNGRY UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

8 Description of charitable activities

FH

Grant making to Food For The Hungry projects

SIS

Seconded International staff and team support

Visits

Food For The Hungry meeting and project attendance and Seconded International Staff visits.

9 Grants payable

Grants to institutions:
Prog. Support - Bangladesh
GOAC
Prog. Support - Bangladesh
Fishing Project Faroe Islands
Prog. Support - Ethiopia
Prog. Support - Kenya
Prog. Support - Rwanda
Prog. Support - Uganda
Catalogue Gifts
Emergency Relief
Community Partnership -
Buuri, Kenya
Child Focussed Community
Transformation Bangladesh
Community Partnership -
Mwumba, Burundi
Other Child Sponsorship -
various
Rwanda Azizi Life
Mustard Seed Shared
Other
Grants to individuals		 FH
2021
£
47,500
65,025
2,500
227,903
56,099
108,697
870
5,715
67,852
17,230
277,504
31,051
1,313
560
-
909819-
0
909819		 SIS
2021
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21495
21495		 Total
2021
£
47,500
65,025
2,500
227,903
56,099
108,697
870
5,715
67,852
17,230
277,504
31,051
1,313
560
-
909819
21495
931314		 FH
2020
£
25,000
-
5,022
136,487
4,660
147,000
908
225
50,727
16,684
226,254
38,749
56,150
405
-
708271-
0
708271		 SIS
2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
24771
24771		 Total
2020
£
25,000
-
5,022
136,487
4,660
147,000
908
225
50,727
16,684
226,254
38,749
56,150
405
-
708271
24771
733042

FH Programme support for Kenya and Uganda includes expenditure on FCDO grants of £184,357 (see FCDO Grants note)

FOOD FOR THE HUNGRY UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

10 FCDO Grants

FCDO is the UK Government's Foreign Commonwealth and Development Office. The grants were received from their Aid Direct Fund. Income and spending by Food for the Hungry UK relating to these grants for the year was as follows:

Uganda UK Aid Kenya UK Aid
9SG6-M6ZC-PR PDSH-R37X-YV
£ £
Grant received from FCDO 84 , 379 . 65 65 , 171 . 87
Expenditure by FHUK - -
Funds remitted to FHUK partner 105 , 995 . 47 7 8, 361 . 66
Under / (over) spend of funds ( 2 1 , 615 .82 ) ( 1 3 , 189 .79 )

FOOD FOR THE HUNGRY UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

11 Support costs

Support
costs
Governance
costs
£
£
Depreciation
42
-
Employer's liability insurance
1,979
-
Phone, print, post & stationery
5,016
-
Sundries
1,452
-
Accountancy
-
2,400
8,489
2,400
Analysed between
Fundraising
7,407
2,400
Charitable activities
1,082
-
8,489
2,400		 2021
Support
costs
Governance
costs
£
£
£
42
60
-
1,979
1,945
-
5,016
4,778
-
1,452
1,467
-
2,400
351
1,440
10,889
8,601
1,440
9,807
7,536
1,440
1,082
1,065
-
10,889
8,601
1,440		 2020
Basis of allocation
£
60
Usage of computers and equipment
1,945
Staff time
4,778
Usage
1,467
Relevance to activity
1,791
Relevance to activity
10,041
8,976
1,065
10,041

FOOD FOR THE HUNGRY UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

12 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. During 20 21 donations made by Trustees to the Charity totalled £ 3,880 in aggregate.

13 Employees

The average monthly number of employees during the year was: 1

The average monthly number of employees during the year was: 1
2021 2020
Number Number
Employees 1 1
Employment costs 2021 2020
£ £
Wages and salaries 13,181 3,246
There were no employees whose annual remuneration was more than £60,000.
Tangible fixed assets
Computers
£
Cost
At 1 January 2021 1,025
At 31 December 2021 1,025
Depreciation and impairment
At 1 January 2021 882
Depreciation charged in the year 42
At 31 December 2021 924
Carrying amount
At 31 December 2021 101
At 31 December 2020 143

14 Tangible fixed assets

FOOD FOR THE HUNGRY UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

15
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
16
Creditors: amounts falling due within one year
Other taxation and social security
Other creditors
Accruals and deferred income		 2021
£
-
8,254
1,691
9,945
2021
£
-
451,495
1,920
453,415		 2020
£
1,219
12,636
1,979
15,834
2020
£
318
555,224
1,440
556,982

FOOD FOR THE HUNGRY UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

17 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 January 2020

£
FH Projects
-
Seconded International Staff
-
Mustard Seed Shared
-
Rwanda Azizi Life
-
-		 Movement in funds
Incoming
resources
Resources
expended
£
£
649,486
(651,716)
24,771
(24,771)
405
(405)
56,150
(56,150)
730,812
(733,042)		 Transfers
Balance at
1 January 2021

£
£
2,230
-
-
-
-
-
-
-
2,230
-		 Movement in funds
Incoming
resources
Resources
expended
£
£
479,284
(514,309)
21,650
(21,650)
405
(405)
1,313
(1,313)
502,652
(537,677)		 Transfers
Balance at
31 December
2021
£
£
35,025
-
-
-
-
-
-
-
35,025
-

As shown above restricted fund balances as at 31 December 2021 are £nil.

Of the £548,179 held in the bank at the year end £451,495 was in respect of restricted funds, being amounts amounts owed, pledged or promised and included within restricted fund other creditors as at 31 December totalling the same amount and split as follows:

Food for the Hungry Association
Seconded International Staff
Mustard Seeds Shared
Rwanda Azizi Life		 £
369,226
11,533
20,736
50,000
451,495

As a result Net Assets held in the balance sheet in relation to restricted funds as at 31 December 2021 totalled £nil.

FOOD FOR THE HUNGRY UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

18 Related party transactions

There were no disclosable related party transactions during the year (2020 - none) .

19
Cash generated from operations
2021
£
(Deficit)/surpus for the year
(30,565)
Adjustments for:
Investment income recognised in statement of financial activities
(98)
Depreciation and impairment of tangible fixed assets
42
Movements in working capital:
Decrease/(increase) in debtors
5,889
(Decrease)/increase in creditors
(103,567)
Cash (absorbed by)/generated from operations
(128,299)
20
Analysis of changes in net funds
The charity had no debt during the year.		 2020
£
14,302
(1,105)
60
(2,771)
116,201
126,687