Company registration nun)ber'. N1648031 Charity registration number.. 107655 The Philippines Aid Project limited (A company liinited by guarantee) Annual Report and Financial Statements for the Year Elided 30 September 2022 J A Mc Clement5 & Co Independent Examiner 25B Ballymena Business Centre Galgorni Ball)ymena Co Antrim BT42 IFL The Philippines Aid Project limited Contents Reference and Administrative Detai15 SirategTiC Report Trustees, Report 3to5 Indep¢ndenl Examinerfs Report Statement of Financial Activities Balaiice Sheei Notes to the Financial Sialements 9t0 19 The Philippines Aid Project limited Reference and Administrative Details Charity Registration Number 107655 Company Registration Number N1648031 The charity is incorporated in Northern Ireland. 22 WoodLTrreen Park Shankbridge Ballyinena Co antrim BT42 3DS Registered Office Independent Examiner J A Mc Clements & Co Independent Exaiminer 25B Ballymena Business C¢ntr¢ Galgomi Ballvmena Co Anlrim BT42 1 FL Page I The Philippines Aid Project limited Strategic Report for the Year Ended 30 September 2022 The trust¢¢s, who are directors for the purposes of company law, present their strategic report for the year ended 30 September 202? in compliance with s414C of the Companies Aci 2006. The sirategic report was approved by the trustees of the charity on 2 January 2022 and signed on its behalf by.. Mr George Esler Trustee Mr John Stark Trustee Page 2 The Philippines Aid Project limited Trustees, Report The trustees, who are directors for the purposes of company law, present ihe annual report together with the financial statements of tlie charitsble company for the year ended 30 Sepiember 2022. Objectives and activities ObJeLls and aims We cary out our purposes by receiving goods at our shop.Items that are useful in other countries are Siored packed and shipped, all other items are sold in the sold in the shop and raise finai)ce enables shippin&'. whicli ainounts lo approxiniately 8 larg)e lai'ges boxes per month. Financial donation eiiable .health carc.educational help and Ihe purchase of needed iteins 1101 available to send. Boxes are received in oil)er countries are distributed by reliable Irustworthy missionaries and organisations who deliver them to Iliose in need. The Charity collects goods for resale and lo forward out to The Pliilippii)es for tl)e benefil of the deprived people of that area ot the world. Donations and acquired objects thai ivould benefit the lives of the individuals living in the Pliilippines are seni out 10 aid these impoverised people in that area. Objeclive.I, .Slrale&iie.s and u¢llvllleJ Amalagation of The Open Door Bullymcjney The charity was requested to lake over anoiher charity called The Open Door Ballymoney With il canie assets , stock ai)d funds wl)en the old cl)arily was dissolved Tliis has impacted on the current charity in thai Ihere is now iiicreased presuure on the directors to look after succently both charities which ave been amalagaled together inio one larger ¢harily The Directors have successfully achieved the full Amalagaiion of the two charities Public benefll The direct benefits flowing from the purpose include.. Ihe relief of poverty by providing food, clothing household and personal itenis. the outconie of this is a reliefof distress, malnutrition and raising of general living standards bringing dignity and hope. -the opportunity lo access help in learning practical skills, we anticipate that the oulcorne of this will be that individuals will find employment or/and become self sufficiei)l ai)d so raise Iheir own livingi standards. Also benefit will coine tlirough the supply of general resources for schools and for individual children, the outcome being) Ihai Ihi5 will enable and enliance ongoing education, raised levels of heealih and wellbeing a5 financial assi5Stance is given to access medical care and education regarding self care. These benefits can be demonstrated through feedback from beneficiaries in the forni of written reports and photographic evidence and minutes of meetings. We cannot identify any harm arising from our purposes. The ¢harity'5 beneficiaries include people of all age groups, gender and religions in other countries bul predominantly Philippines and Zambia. Those eho benefit will be living in poverty. have no financial means of assessing health care, education and general educational resources. The only private benefit flowing from this puerpose is gained by local businesses. This is incidental and necessary because there are items that are beneficial in fulfilling our purposes that are not donated or donated in small quaniities. Page 3 The Philippines Aid Project limited Trustees, Report Th¢ trustees confirm thai they have complied with the requirements of section 17 of the Charities Aci 201 I to have du¢ regard lo the public benefit guidance published by the Cliarity Commission for England and Wales. Trustees and officers The trustees and olTicers serving during7 the year and since the year end were as follows.. Trustees: Deborah Loriiner Mr GeorgFe Esler Mr John Stark Mrs Saiidra Stark Mrs Emelia Baccol Mc Neice Mr William John Mc Neice Structure, governance and management Financial instruments Obje¢live.i andpolicles The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is &yoverned by the charity's policies approved by the board ot trustees. whicli provide written principles on the use of financial derivatives lo manage these risks. The chariiy does not use derivative financial insiruinenis for speculative purposes. Ca&h flow rl.sk The charity's aclivities expose it priinarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchan&Te forward contracts and interest raie swap contracts lo hedsie these exposures. Inieresl bearins assets and liabilities are held at fixed rate to ensure certainty of cash flows. Credil rijk The chai'ity's priiicipal financial assets are bank balances and cash. trade and other receivables, and inveslments. The charity's credit risk is primarily altribulable to its trade receivables. The amounts presenied in the balance sheel are net of allowances for doubtful receivables. An allowance for impairment is Inade where there is an identified loss event whicli, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. Tlie credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks wilh high credit-ralings assigned by inlernalional credit-ratiiig agencies. The charity has no significant concentration of credit risk, with exposure spread over a largFe number of counterparties and customers. Liquidity risk In order to mainlain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity Lises a mixture of long-terni and short-lem debt finance. Further details regarding liqutdity risk can be found in the Statement of accounting policies in the financial statements. Page 4 The Philippines Aid Project limited Trustees, Report Statement of trustees, responsibilities The trustees (who are also the directors of The Philippines Aid Project limited for the purposes of company law) are I'espon5ible for preparing Ihe trustees, reporl and the financial statements in accordance ivith applicable law ai)d Uniied Kii)gdom Accounting Standards {Un ited Kiiigydom Generally Accepted Accounting Practice). including fRS 102 "The Financial Reporting Standard applicable in the UK and Repiiblic of Ireland" Company law requires the trustees 10 prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that tliey give a true and fair view of Ille slate of affairs of the charitable coinpany and of the incoming resour¢¢s and application of resources, incliiding ils income and expenditure, of the charitable coinpany for that period. In preparing these financial stalemenls, the trustees are required lo: select suitable accounting policies and apply them consistently. observe the methods and principles in the Charities SORP. niake judgements and estimates that are reasonable and prudent. stale wheihLr applicable accounting slandards, coniprising FRS 102 have been followed. subject to any matei-ial d¢partLires disclosed and explained iii the finaiicial slalements. and prepare the financi, for UK corporation tax Plirposes. Accordingly.. the charity is potentially exempt from taxation in respect of income or capital gFains received within categories covered by Chapter 3 Part I l of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. to the extent that such income or gains are applied exclusively to charitable purposes. Tangible fixed assets Individual fixed assets costing £0.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Page 10 The Philippines Aid Project limited Notes to the Financial Statements for the Year Ended 30 September 2022 Cash and cash equivalents Cash and cash equivaleiits comprise cash on hand and call deposits, and other short-terni highly liquid invesnneiits that are readily convertible to a known amount of cash and are siibject to an insignificani risk of change iii value. Borrowings Interesl-bearing borroivings are initially recorded at fair value, net of transaction costs. Interest-bearinb borrowings are subsequently carried at ainortised cost, with tlie ditrerence between Il)e proceeds, net of transaction costs, and the ainount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effeciive interest method and is included in interest payable and siinilar chargTes. Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liclbilily lor ai least twelve months after the reporting date. Foreign exchange Transactions in toreign currencies are recorded at the rate ot exchange at the date of the transactioii. Monetary assets and liabilities denoininaled in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at thai date. The resiilts of overseas operations are translated al tlie avera&7e rates of excliangye durin&y the period and their balance sheeis at the rates rulingp al the balance sheet dale. ExchaiibTe ditTei'ence5 arisiii&y on translation of th¥ opening nel assets and results ot overseas operations are reported in other con)prehensive inconie and accuinulated in equity (altribuled to non-conlrollinby interests as appropriate). Other exchang>e differences are recogTnised in the Statement of Financial Activities in the period in which they arise except tor: l ) exchangye ditTerences on transactions entered into to hedge certain foreigyn currency risks (see above). 2) exchange differences arising on gains or losses on non-monetary ilems which are recognised in other comprehensive incol￿e. and 3) in the case of the consolidated financial statemeiils, exchange difterences oli monetary items receivable froin or payabl¢ to a foreign operation for which settlement is neither planned nor likely to occur (therefore toiining part of the nei investment in the foreign operaiion), which are recognised in other comprehensive income and reported under equity. Fund structure Unrestricied income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity. Restricted income funds are those donated for use in a particular area or for Specific purposes, the use of which is restricted to Ihal area or purpose. Page 11 The Philippines Aid Project limited Notes to the Financial Statements for the Year Ended 30 September 2022 Financial instruments Clu.s.sifiL'dlioii Financial assets and fii)ancial liabilities are recognised when the charity becoines a party to the contractual provisions of the inslrunienl. Financial liabilities ¢ind equity instruments are classified according lo tlie subslance of the Lontra¢lual arrangTeinents entered iiito. An equity insiruin¢nt is any contract that evidences a residual interest in the a%sets of the charily alier deduciing all of its liabilities. Recognlilon and measuremenl All financial assets and liabilities are initially measiired at transaction price {in¢luding transaction costs), except for those financial iiition aiid which meet the above conditions are measured at the undiscounted aniount of the casli or otl)er coiisideration expected to be paid or received. nel of inipairnient. Wilh the exception of some hedging instruments, other debt instruments not meeling these condition5 are Inea5ured at fair value through profil or loss. Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairnient. Inveslmenls Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profil or loss. Where fair value cannot be measured reliably, investmenis are measured at C05t le55 impairnient. Investments in subsidiaries and associates are 1￿casUred at cost le55 impairment. For investments in subsidiaries acquired for consideration including the issue of sliares qualifying for merger relief, cost is measured by reference to the nominal value of the shares i55ued plus fair value of other consideration. Any premium 15 ignored. Pag¢13 The Philippines Aid Project limited Notes to the Financial Statements for the Year Ended 30 September 2022 Derlvailvefinancial instrumenls The charitv uses derivalive fillancial instruments lo reduce exposure to foreign exchange risk and interest rate movements. The charity does nol hold or issue derivative financial instrum¢nts for speculative purposes. Derivatives are initially recognised at fair value at the date a derivalive contract is entered into alld are subsequentlw remeasured to their fair value at each reporting date. The resulting, gyain or loss is recognised in slaleinent of financial activities immediately unless the derivaiive is designated and effective as a hedgincy insirument, in ivliicli event the liming of ilie recogJnition in statemei)l ot. financial aciivilies depends ()n Ilic nature of the hedgie reliltionship. Fair value me(Isuremenl The besl evidence or fair value is a quoted price for an identical agset in an active market. When quotcd prices are uniivailablL, Ihe price of a recent Irai)saction tor an identical assei provides evidence of fair valiiL as long as there has noi been a significant change in economic circumsiances or a significant lapse of lime since the Iransaction took place. If the market is not active aiid recent Iransactions ot an ideniical asset on tli¢ir own are not a gyood estimate of fair value, the tair value is estimated by using a valuation technique. 3 Ineome from donations and legaeies Restricted funds Total t'und5 Donations and legacies. Donations from community groups 26,528 26,528 Total for 2022 26,528 26,528 4 Income from other trading aetivities Unrestricted funds General Total funds Trading income; Shop income frorn sale of donated goods and services 65,323 65,323 Total for 2022 65,323 Total for 2021 89,349 89,349 Page 14 The Philippines Aid Project limited Notes to the Financial Statements for the Year Ended 30 September 2022 5 Expenditure on raising funds a) Costs of trading activities Unrestricted funds General Restricted funds Total funds Note Costs of goods sold Other direct costs of activilies for generating funds Allocated suppo11 costs 11,371 2,528 13,899 52,560 415 18,599 71,159 415 Total for 2022 64,346 21,127 85,473 Total for 2021 61.855 61,855 Tnt#l costs 6 Expenditure on cliarilable activities Unrestrieted funds Ceneral Restricted funds Total funds Note Grant funding of activities Goveriiance costs 926 926 900 900 Tolal (or 2022 900 926 1,826 Total for 2021 700 700 Total expenditure In addition to the expenditure analysed above, there are also governance costs of £900 (2021 £700) which relate directly to charitable activities. See noie 8 for further details. Page 15 The Philippines Aid Project limited Notes to the Financial Statements for the Year Ended 30 September 2022 7 Other expenditure Unrestricted funds General Total funds Note Other resources expended 2,946 2,946 Total for 2022 2,946 2,946 Total for 2021 773 773 8 Analysis of governance and support costs Governance Costs Unre$tricted fund5 General Total fund5 Independent examiiier fees Lxainiiiation of the finaiicial staienients 900 900 Total for 2022 900 900 Total for 2021 700 700 Page 16 The Philippines Aid Project limited Notes to the Financial Statements for the Year Ended 30 September 2022 9 Net incomingloutgoing resources Net incoming resources for the year include.. 2022 10 Trustees remuneration and expenses No trustees, nor any persons connected ivith them, have r¢ceiv¢d any remuiieraiion fi'om the charity during the year. I I Independenl examiner's remunerotion 2022 2021 Examination ot, the linancial statements 900 700 12 Taxation The charity is a regislered charity and is therefore exempt from taxation. 13 Tangible fixed assets Motor vehicles Total C05t At l October 2021 3,800 3,800 At 30 September 2022 3,800 3.800 Depreciation AI 30 September 2022 Net book value At 30 Seplember 2022 3,800 3,800 At 30 September 2021 3,800 3,800 14 Business eombinations On l August 2021, THe Phillipines Aid project Limited (Charity) acquired 0/0 of the issued share capital of THe Open Door Ballymoney (Charity ), obtaining control. The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below.. Page 17 The Phllippines Aid Project limited Notes to the Financial Statements for the Year Ended 30 September 2022 15 Cash and cash equivalents 2022 2021 Cash on hand Cash at bank 666 35,82? 80 37,046 j7.1?6 16 Creditors: amounts falling due within one year 2022 2021 Trnsiees currenl accounts Other crediiors Accruals 618 (2) 900 618 1,200 ,516 1.818 17 Creditors: amounts falling due #fter one year 2022 2021 Other loans 3,387 3,387 18 Funds Balance at 30 September 2022 Balance at I October 2021 Incoming resources Resources expended Unrestricted funds General 35,721 65,323 (69,192) 31,852 Re$trict¢d funds 26,528 (22,053) 4,475 Total funds 35,721 91,851 {91,245) 36,327 Balance al 30 September 2021 Balance al I October 2020 Incoming r¢sour¢es Resources expended Unrestricted funds General 7,980 91,569 (6J,828) 35,721 Page 18 The Philippines Aid Project limited Notes to the Financial Statements for the Year Ended 30 September 2022 19 Analysis of nel assets between funds Unrestricted runds General Total fiinds at 30 September 2022 Taiigible fixed assets Current assels Current liabilities Creditors ovei. l year 4.742 36.488 {1,516) (3,387) 4.742 36,488 {3,387) Total net assets i6,327 36,327 Unreslricted funds General Total funds at 30 September 2021 Tangible fixed assets Current assets Current liabilities Creditors over l year 3,800 37.126 3,800 37,126 {1,818) (3,387) (3,3871 Total net assets 35,721 35,721 20 Analysis of net funds At30 September 2022 At l October 2021 Cash at bank and in liand 37.126 37,126 Net debt 37,126 37,12CI At30 September 2021 At l Oetober 2020 Net debt 21 Related party transactions There were no related party transaciions in the year. Page 19 The Philippines Aid Project limited Statement of Financial Activities by fund for the Year Ended 30 September 2022 Unrestricted Funds Tntal Total Unrestricled Unrestricted Funds Funds 2022 2021 Income aiid F.ndowments from: Other Iradiiig aciivities 65,323 89,349 Totsl income 65,323 89,349 Expenditure on: Raising funds Cliaritable activities Otlier expenditure (64,346) (900) {3.946) (61,855) (700) (1.273) Total expenditure (69,192) (63,828) Nel (expenditure)/income (3.869) 2.5.521 Net movemeni in funds (3,869) 25,521 Reconciliation of funds Total tunds brouglit toNard 35,721 7,980 Total funds carried forward 31,852 33,501 This page does not fom] part of the statutory financial statements. Page 20 The Philippines Aid Project limited Statement of Financial Activities by fund for the Year Ended 30 September 2022 Restricted Funds Total Restricted Funds 2022 Total Restricted Funds 2021 Income and Endowments from: Donations and legacies 26,528 Total income 26,5?8 Expenditure on: Raising funds Chariiable activities (21.127) (926) Total expenditlire (22,053) Net income 4,475 Reconciliation of funds Total funds carried forw4trd 4,475 This page does not form part of the statutory financial statements. Page21 The Philippines Aid Project limited Detailed Statement of Financial Activities for the Year Ended 30 September 2022 Total 2022 Total 2021 Income and Endowmenls from: Donations and legacies (analysed belo¥v) Other trading activities (analysed below) 26,528 89,349 Total income 91,851 89,349 Expenditure on: Raising funds (analysed below) Charitable activilies (analysed below) Other expenditui'e (analysed below) (85,473) {1,826) {3,946) (61,855) (700) (1,273) Total expenditure (91,245) {63,8?8) Net income 606 25,521 Net movement in funds 606 25,521 Reconciliation of funds Total tunds brought foNard Total funds carried foNard 7.980 36,327 33.501 This page does not fonn part of the statutory financial statements. Page 22 The Philippines Aid Project limited Detailed Statement of Financial Activities for the Year Ended 30 September 2022 Total 2022 Total 2021 Donft110115 and legacies Donated goods & Donations 26,528 26,528 Olher Irading aclivilies UK Governinent gJraiits Sales of'donaled &Toods 35,710 53.639 65.323 65,323 89,349 Rai.singfunds Purchases Piirchases Packag)ing Doiialions & Objecis sent lo Philippines Freighi aiid carriagye Motor expenses Rent Reni Rates Rates Water raies Light, heal and power Light. heat and power Insurance Insurance Blli Iding repairs Staff training Trade and professional journals Trade subscriptions (2,528) (9,920) (1,451) (13,364) (17,670} (12,520) (12,000) (2,960) {452) (11,480) {25,000} 14,672) (14.320) { 1,000) (289) (298} (5,647) (3.610) (500) (498) (1,640) (90) (195) (130) {85,4731 (3,568) (500) (526) (500) 61,855 Cliarilable acllvlfles Charitable donations Sponsorship Accountaiicy fees (500) (900) (700) (1,826) (700) This page does not forni part of the statutory financial statements. Page 23 The Philippines Aid Project limited Detailed Statement of Financial Activities for the Year Ended 30 September 2022 Total 2022 Total 2021 Ollier expendilure Tclephone and fax Charitable donations Travel alid subsisieiic¢ Bank charges (351} ( 1,000) (1,541) (1,054) (500) (773) (1,273) {3,946) This page does not form part of the statutory financial statements. Page 24